Construction firm Sicon returns to profitability

Holding company for Sisk reports pretax profit of €14 million following 2011 loss of €153.2 million

Sicon chief executive Liam Nagle said the business was performing well and responding strongly to the challenges posed during 2011. Photograph Brenda Fitzsimons

Sicon chief executive Liam Nagle said the business was performing well and responding strongly to the challenges posed during 2011. Photograph Brenda Fitzsimons

 

Irish construction firm Sicon, which is the holding company for Sisk, has returned to profitability following pretax losses of €153.2 million in 2011. The company posted pretax profit of €14 million and operating profit of €2.5 million for the 11 months to the end of 2012.

Turnover during the period was €824.6 million, compared with €1.1 billion for the 13 months to end of January last year.

The group had cash balances of €93.5 million, up from €76 million at the end of the prior accounting period.

The balance sheet was strengthened during the period by the issue of 24 million new ordinary shares, which were fully subscribed for by the Sisk families, and which raised €15 million in new equity. At the end of 2012 shareholders’ funds were €70.2 million.

Sicon chief executive Liam Nagle said the business was performing well and responding strongly to the challenges posed during 2011.

“We have a strengthened balance sheet, a strong order book and are well positioned to make progress in each of our markets in the coming years.”

He said trading in Ireland for the period was generally positive amid the prevailing difficult construction environment.

“Although trading conditions generally remain tight in the current year, the business has a strong order book for 2013 with a reasonable line of sight into 2014.”

In 2011 the company recorded pretax losses of €153.2 million. That year the group wrote off €83.9 million on its Polish joint venture schemes, bringing its losses on the projects to €97 million.

A 50 per cent associate of the group, SRB Civil Engineering Ltd, was awarded contracts for three separate sections of the A1 motorway in Poland. However, he accounts stated the joint venture “was left with little alternative choice but to terminate the other two contracts”.

The company filings also disclosed a net loss of €49 million on the sale of the group’s healthcare business during 2011.