Pre-tax losses fall sharply at Irish global engineering firm
Published 02/12/2015 | 02:30
Pre-tax losses at Cork-based international engineering group Kentech fell sharply to $2m (€1.88m) last year.
According to accounts just filed by Josar Holdings Ltd, the group reduced its pre-tax losses by 42pc as revenues rose by 23pc to $151.4m. The directors state that they had a record backlog at the end of last year "and the directors look forward to a period of positive growth".
The group operates in Australia, Kazakhstan, Kuwait, Mexico, Qatar, Russia and the UAE.
It confirmed it received fresh funding of $32m from a London-based investor last June and loans to Danske Bank were paid back in full while the cash injection also allowed the group settle with a number of creditors.
According to the directors, the $32m investment will also result in a significant injection of cash onto the balance sheet.
The directors state that the funds will be used to support the ongoing investment in the development of the group's personnel; the continued investment in the company's operational infrastructure including facilities, plant and equipment and the broadening of service lines and increase of working capital for the business.
The directors state that they incurred a loss of $12.9m on a contract in Abu Dhabi in 2014. They say the project has given rise to significant losses but that it is now complete and a final settlement agreement has been reached.
Numbers employed by the group fell from 2,994 to 2,705. But staff costs increased sharply, from $64.1m to $92.55m.
The post-tax loss for the year was $5m following a corporate tax bill of $3m paid on profits outside Ireland. The directors expect revenues to increase in 2015. At the end of last year, the group had accumulated profits of $6.43m.