Sisk family group reports pre-tax profits of €36.8m

Sicon Ltd, the holding company for a range of construction businesses owned by the Sisk family, made profits before tax of €36.8 million for the year ended December 31st, 2002. Profits for 2001 were €42.7 million.

Group turnover was €810 million, an increase of 4 per cent on the preceding year. Accumulated profits at the end of 2002 were €141 million.

The group is involved in building and engineering contracting, quarrying, manufacture of building products, and investment property management.

Construction activity and profitability was "stable" in 2002 when compared with 2001, according to the directors' report. Investment properties benefited from strong rental growth and high occupancy levels.

The accounts show that construction and civil engineering provided €761 million of the total turnover figure of €810 million.

Activities in the Republic provided €572 million of turnover, with the UK providing €223 million and the rest of the world €14.6 million.

At the end of 2002 the group was owed €3.85 million by a company owned by Mr George Sisk, Mr Henry Sisk and Mr John Sisk and their families.

The principal asset of the company, which was not named in the accounts, was a shareholding in Sicon.

The loan was non-interest bearing and had no fixed repayment date and had been used to finance the purchase of shares in the company, according to the accounts.

"This loan has been treated as a reduction in distributable profits and shareholders' funds. In the opinion of the directors this treatment reflects the substance of the transaction, which is similar to the purchase of treasury shares."

Directors remuneration during the year was €1.1 million. The accounts state that Sicon was owned by Mr George Sisk, Mr Henry Sisk and Mr John Sisk, together with their wives and family trusts, with each owning a third of the issued shares.

The directors of the company during the year were: Mr George Sisk; Mr Henry Sisk; Mr John Sisk; Mr William Lyster; Mr Desmond Ormsby; and Mr Sylvester Riordan.

The average number of people employed by the group during 2002 was 3,656, with 1,432 of these being employed in the Republic. The majority of those employed, 1,929, were employed outside the Republic and the UK.

The notes to the accounts state that since December 2002, the group has bought the entire share capital of the Courtois Group for €11 million in cash.