Siteserv expecting turnover of €400m in 2015

Group reports pretax profit of €14.2m last year with turnover of €324m

The Denis O'Brien-owned infrastructure and utility support services company Siteserv, which recently rebranded as Actavo, is forecasting turnover of about €400million for 2015 on the back of strong trading.

According to accounts recently filed with the Companies Registration Office, the group reported a jump in both turnover and pretax profits last year and said it was confident that 2015 “would represent another year of successful development for the business.”

Siteserv was acquired by Denis O'Brien's company Millington for €45.4 million in March 2012 in a deal that saw State-owned Irish Bank Resolution Corporation (IBRC) write off €110 million of its €150 million debt, effectively a 70 per cent haircut.

The latest results show turnover at Siteserve rose 36 per cent from from €239 million in 2013 to €324 million last year with pretax profits jumping 80 per cent from €7.9 million to €14.2 million.

The group said 63 per cent of its turnover in 2014 - equivalent to €202.9 million - came from outside of Ireland, up from €111 million a year earlier. Siteserv’s Irish revenues rose to €80.6 million last year from €51 million.

Siteserv recorded an operating profit last year of €16.69million last year as against €8.59 million a year earlier. However, interest payments rose from €1.6 million to €2.45 million over the same period.

“The group demonstrated its confidence in future growth in demand for its services by continuing to invest in capability, service equipment, plant and machinery with net capital expenditure amounting to €10.3 million for the year,” it said.

Siteserv employs over 3,000 people across 50 locations and 30 companies, including GMC/Sierra, which was awarded contracts to install water meters in Dublin City, Wicklow, Kildare, Offaly, Laois, Mayo, Roscommon, Donegal, Sligo and Leitrim in July 2013.

The company said it was currently pursuing a policy of geographic and sectoral diversification with resources being deployed on developing business in the UK and in the Caribbean, where Mr O'Brien's telecoms firm Digicel has a large foothold.

Siteserv said it won contracts last year with Digicel, BSkyB, Phillips 66, Electric Ireland, ESB, Glastonbury, the Commonwealth Games, Giro D'Italia, and Cork University Hospital.

It said part of its long-term strategy was to position itself as the infrastructural services firm for Digicel with Siteserv recently setting up a number of operations in the Caribbean region.

Siteserve said it employed 2,526 at the end of 2014, a figure that has since risen to more than 3,350. Staff costs increased to €130.4 million last year, from €80.9 million a year earlier.

During the 12 months under review, Siteserv said group subsidiaries made sales and purchases from Digicel of €17.46 million and €193,242 respectively. It also made sales and purchases of €1.79 million and €28, 482 respectively with Topaz, the fuel group, which was yesterday sold by Mr O'Brien for an estimated €450 million.

Charlie Taylor

Charlie Taylor

Charlie Taylor is a former Irish Times business journalist