Readymix lifts profits by 15%

The Republic's booming construction sector helped to boost the fortunes of Readymix with pre-tax profits up 15 per cent from £13 million (€16 million) to £14.9 million (€18.4 million) last year. The outturn was slightly depressed though by a drop in profits in Northern Ireland.

Turnover rose by 10 per cent from £112 million to £124 million. This increase was mainly achieved in the Republic on the back of a high level of construction and good economic conditions.

The group is primarily exposed to the housing sector but also enjoyed good growth in other sectors last year, with the exception of agriculture which was disappointing. Infrastructural projects together with commercial, industrial and retail developments were also strong, yielding benefits for the company.

Turnover in Northern Ireland was broadly unchanged on 1997 but profitability was eroded by competitive pricing, lower expenditure on roads and generally difficult trading conditions there. The contribution from its Isle of Man activities was improved by control of costs and overheads, it said.

Earnings per share improved by 16.3 per cent at 11.39p up from 9.79p in 1997. Shareholders will be paid a second interim dividend of 2.25p per share in lieu of a final dividend for 1998. It will be paid on March 31st. This gives an overall dividend of 0.86p per share, up 17.2 per cent on the previous year.

The company is predicting a successful year in 1999. It is continuing to seek out suitable areas for expanding its business base.

Last year Readymix completed the purchase of Laois Concrete which will complement its operations in Offaly and Kilkenny.

In Northern Ireland, its RMC Catherwood subsidiary, acquired the business of PJ McCann and a concrete block operation at Ballynahinch, Co Down. Overall Readymix spent £13.7 million on acquisitions and investments in 1998.