Siac bounces back from examinership and into profit

Building and engineering group Siac, which emerged from examinership in February, has said it is in profit and making significant progress.

Its accounts for the 14 months to the end of February 2014 show that shareholder funds now stand at €9.14 million, compared to a deficit of €45 million in December 2012.

Siac reported a group operating profit of €3.56 million for the 14 months to the end of February as against a loss of €4.12 million for the year ended December 31st 2012.

Profit on ordinary activities before interest and taxation came in at €45.2 million, compared to a loss of €84.7 million.

Established in 1913, Siac is one of the best known of Ireland’s construction companies having worked on a number of high profile projects including the Aviva Stadium and the M4/M6 motorway.

Despite maintaining profitability after the 2007 crash right up until 2011, it moved into a €4 million loss situation in 2012, which was largely the result of the collapse in the domestic building industry. Siac attempted to diversify into Poland, which led to further losses after it cancelled a €400 million road project to build 35km of motorway and bridges from Kruz to Debica, following a dispute with a local authority.

Siac emerged from examinership earlier this year following a rescue plan that involved investors putting €10.5 million in to the group.

Siac said it had ring-fenced all of its historical liabilities in Poland under the court approved Scheme of Arrangement and continued to pursue contractual claims against the Polish Roads Authority. It is to pay 30 per cent of any net amounts recovered from Poland to historical creditors, two-thirds of which will be paid to third party unsecured creditors.

The company, which has also divested itself of its properties and associated historical long-term debt as part of its rescue plan, said it retains the continued support of Bank of Ireland through the provision of a three-year revolving credit facility. It said that bonding lines had also been restored.

Commenting on the latest accounts, Siac chief executive Martin Maher said the group was performing well.

“Tendering remains strong, with all divisions continuing to procure new works, current contracts are performing well, and we are on target to meet our year-end figures. We have come through well-documented challenges in relation to the project in Poland, during which time we remained focused on achieving stability for the business and the 200 people we directly employ. We are now able to move forward with increasing confidence, and are back building the kind of projects that we do best.”