Sisk 'happy' despite 56% fall in profits to €10m

PROFITS AT building and civil engineering group Sisk fell by more than 50 per cent last year to €10 million, but the company said yesterday that it was happy with the performance given the challenging trading conditions.

The group, whose recent projects include the new Aviva Lansdowne Road stadium and the Grand Canal Theatre in Dublin, continued to expand overseas last year, and added to the healthcare operations that it has been developing since 2004.

Figures released yesterday show that sales were down 30 per cent at €1 billion, while pre-tax profit fell 56 per cent to €10.5 million from €24 million.

Sisk had booked an exceptional charge on its profit and loss account of €30 million, which broadly covered provision for bad or doubtful debts, and some of the costs associated with an expansion in the Middle East.

The company said that its policy with bad debts was to “vigorously pursue debtors to the fullest extent possible, including court actions”. Earlier this year it began High Court proceedings against Anglo Irish Bank and Fordmount Developments for €3.2 million due from the Savoy Hotel project in Limerick.

The company cut net debt by 18 per cent to €62 million. Shareholders’ funds stood at €207 million at the end of the year, while cash balances grew 7 per cent to €221 million.

Close to €1 in every €4 earned in sales now comes from outside Ireland, and Sisk expects this will continue. It has secured €400 million of work in Britain, which includes a £78 million Olympic athletes’ village for London 2012.

Chief executive Liam Nagle said that the business remained very generative.