Kentech profits hit by dispute
Published 23/11/2012 | 05:00
Profits and revenue tumbled last year at Cork-based engineering group Kentech, the firm where directors had been engaged in a bitter dispute up to last month.
New accounts for the business show revenue sank 18pc to $115.9m (€90m) last year while pre-tax profits plunged 44pc to $9.5m (€7.3m). The declines came as administration expenses soared and a time lag occurred between the end of old projects and the start of new ones.
Kentech provides engineering services to clients such as oil and mining companies.
The company, which operates as part of Josar Holdings and employs about 3,000 people, said that in 2011 a number of major projects the firm had been working on came to an end, but that ongoing contracts coming from 2010 into 2011 helped it maintain a "strong performance" in the first six months of last year.
"These contracts wound down in quarter three and the new projects awarded did not commence with a smooth overlap," the directors note. "This drop in the level of business ... has directly led to the lower turnover and profits posted in 2011 against 2010."
A legal battle erupted this year between some of the directors and shareholders in Kentech.