Sisk family give company cash injection after losses on unpaid work
The family behind building contractors Sisk Group pumped €15m into the business last year to help cope with losses of almost €100m in Poland.
John Sisk & Sons suffered losses of €98m over two years because of unpaid money it says is owed by the government of Poland for road building.
The European Commission is investigating Poland's refusal to pay contractors for infrastructure projects.
The £37m (€42.8m) sale of a property on London's Oxford Street and the sale of a healthcare business to the Sisk family that owns the group helped raise €100m to deal with the fallout, the company said.
Sisks says a decision to write off the cash for accounting purposes helped push them to a pre-tax loss of €154m for an 11-month period in 2011.
The decision to account for the Polish debt as a loss does not mean Sisks has given up on recovering the money, said chief executive Liam Nagle.
The company believes it has a legal right to recover €250m for claims and damages.
However, he said it was prudent not to reflect any value for recovery on the balance sheet.
Sicon Ltd, the holding company that controls Sisk Group returned to profit in 2012, and is expected to make a profit this year, he said.
Turnover for the year to the 11 months to the end of December is expected to be €900m – including €400m in Ireland.
Pre-tax profits of €10m to €12m are expected when the numbers are finalised in the coming months. Pre-tax losses were €3.4m for the year to the end of January 2012.
The company employs around 1,400 staff, half in Ireland with the bulk of the rest in the UK.