Readymix posts €3.8m pretax loss

PROFITS AT listed company Readymix continue to be hit by the dramatic slowdown in the construction industry, with the company booking a pretax loss of €3.8 million for the first quarter of 2010.

While slightly lower than the €3.9 million loss for the same period in 2009, revenues fell 31 per cent year-on-year as falling prices across a number of key product lines affected revenues.

The company expects ongoing pressure on prices and a continuing drop in volumes will see revenues fall on a comparative basis for the remainder of 2010.

After the company’s annual meeting in Dublin yesterday, managing director Roger Gonzalez said cold weather in January and February this year had resulted in less construction activity, which had affected business.

The company, which was involved in the construction of the Aviva stadium and the Titanic quarter in Belfast, said there was a lack of new infrastructural projects in the pipeline.

While declining to predict the timing of an Irish or global economic recovery, Mr Gonzalez said he believed that a recovery in the construction sector would lag the general economic recovery by a year.

Against the background of the construction downturn and the “exceptionally competitive market”, Readymix had succeeded in sustaining its market share, he added. The company had also succeeded in implementing efficient cost-cutting measures, which included job losses last year and renegotiation of contracts with suppliers.

Readymix, which has operations in the Republic and Northern Ireland, as well as the Isle of Man, employs approximately 360 people, half of whom are based in Dublin. The company has no plans for further redundancies.

Mexican giant Cemez is the majority shareholder in the company. Shares in Readymix closed down 4 cents to finish at 20 cents yesterday evening.