CLG racks up €3.7m losses and warns of 'major risk' in downturn
DUBLIN-based engineering group CLG, which provides services to Bord Gais, racked up losses of €3.7m in the year to the end of last June as the recession and lower government infrastructural spending continued to damage its business.
Last year, CLG teamed up with London-based engineering giant Balfour Beatty and won a fresh nine-year €500m tender from Bord Gais Networks. That tendering process cost CLG almost €1.4m, accounts filed at the Companies Office show.
Pre-tax losses at CLG Developments in the last financial year compare with a €204,000 profit in the previous period. Turnover slumped to €29.5m in the latest financial year.
Directors, who include managing director Kieran Connors, said "the economic recession is still having an adverse effect on all areas of the business," adding that they're continuing to seek cost savings and that the downturn presents a "major risk" for the company, which employs about 150 people.
And while CLG's cash flow and liquidity is currently positive, it will have "high commitments" to the joint venture with Balfour Beatty.
Directors, while seeing their pay fall to €308,000 from €375,000, received just over €1m in pension contributions last year compared with €287,000 the previous year. Almost €19,000 in dividends was paid to shareholders. Mr Connors charged the company €111,000 rent for a storage yard. He also bought a residential property from it last year for €183,000.
The wages bill for other workers fell to €6.9m from €9.3m.
The accounts point out that while the company has been carrying high levels of debts and receivables, the money is owed mainly by semi-state companies and is not considered a risk. However, the company is engaged in negotiations on other significant income claims.