Coffey construction back into black after cutting costs
Galway-based Coffey Construction returned to the black last year as it cut staff numbers and other costs.
Coffey Construction (I) Ltd swung to a pre-tax profit of €2.4m after recording a pre-tax loss of €4.5m in 2012. Revenues rose 24pc to €26.23m.
"The company has returned to profitability," the directors said in the latest set of accounts. "Market conditions continue to be challenging due to the economic climate and highly competitive tender market in which the company operates."
The turnaround in the company came after the firm cut the cost of sales from €34.97m to €20.93m resulting in the firm recording a gross profit of €5.3m following a gross loss of €343,908. Numbers employed by the firm last year dropped from 254 to 183 with the number of construction workers declining from 224 to 151 with management and administration increasing from 30 to 32.
Staff costs at the firm last year fell from €11.5m to €7.97m with directors' remuneration decreasing from €413,065 to €301,978.
On the risks and uncertainties facing the firm, the 2013 directors' report said: "Due to current economic conditions, the operating environment of the company continues to be challenging.
"As a public works contractor, the company is reliant on the Government's capital expenditure budget for future works. The company is exposed to sector risk which it mitigates by spreading its profit centres over a number of different activities such as roads, rail, water treatment."
The figures show that the firm's operating profit last year totalled €2.19m compared to an operating loss of €5.48m in 2012.
The accounts show that the firm paid out €165,877 in interest payments in 2013 while the firm benefited from €388,419 concerning a surplus on revaluation of an investment in a subsidiary.
The profit last year takes account of non-cash depreciation costs of €417,548.