Firm pays €5.9m in exceptional contribution to board pensions

Wexford-based construction group Cleary & Doyle made an exceptional €5.9 million contribution to directors' pensions in 2005, according to accounts just filed.

No reason for the exceptional item is given in the accounts and there was no comment available from the group yesterday. The group also made its regular pension payments to directors.

In his Budget speech in December, Minister for Finance Brian Cowen announced a €5 million cap on the size of pension funds to which ongoing contributions would receive tax relief.

The exceptional pension payment meant the Cleary & Doyle group, owned by John Doyle and Eugene Cleary, made an after-tax loss of €1.2 million for the year to end June 2005on a turnover of €123.5 million.

Cleary & Doyle is involved in property development, building and public works contracting, construction materials manufacture and sales, and property investment, among other construction-related activities.

It is currently engaged in the €33 million renovation and development of White's Hotel, Wexford; a €32 million Cork civic centre; a €25.6 million health sciences complex in UCD; and the building of a €12 million facility at St John's Central College, Cork.

It is also involved in a €33 million joint venture project to design and construct a new pharmaceutical manufacturing plant for Altana Pharma in Carrigtwohill, Cork. The group's partner in the venture is German firm Zublin, and Cleary & Doyle is entitled to 30 per cent of the profits upon completion, according to the accounts.

The accounts for the year to the end of June 2005 show that turnover rose 19 per cent to €123.5 million, from €103.8 million in 2004, when the group recorded pretax profits of €3.4 million.

If it were not for the large contribution to the directors' pension fund, the group would have reported a pretax profit of approximately €4.7 million in the most recent financial period. Accumulated profits at the end of June 2005 were €17.2 million.

The notes to the accounts show that the bulk of the group's turnover came from the building contracting and property development aspects of its operations, which accounted to €95.3 million.

Builders providing brought in €24 million, block manufacture had sales of €3.5 million, with land sales securing revenue of just €553,955.

The group employed an average of 369 people during 2005, up from 276 the previous year. Total employment costs were €16 million.

Notes to the accounts state that the company is a member of the multi-employer defined benefit scheme operated by the Construction Industry Federation.

It is not possible to identify the company's share of the underlying assets and liabilities within the federation scheme, the notes state. During the year the group contributed €368,757 to the scheme.

Directors emoluments for the year, including pension contributions in addition to the exceptional item, were €1.16 million.

The directors of Cleary & Doyle Ltd, the controlling company in the group, were Mr Doyle, Mr Cleary, and John Pittock. In March 2005, Gordon Radloff was appointed managing director of Cleary & Doyle Contracting Ltd.

There are a number of subsidiary companies in the group.