CLG still hit hard by recession
Construction firm CLG Developments has warned that the recession continues to "dramatically impact" its activities as government infrastructural spend remains low.
The directors of the Dublin-based firm made the bleak assessment in the latest set of accounts for the company behind the business, Paperside.
It reported that its operating losses narrowed to €1.8m in the 12 months to the end of June last year from €3.8m a year earlier.
But revenue at the group slumped 43pc to €16.7m. That followed a 16pc decline in revenue the previous year.
It also recorded exceptional costs of €2.5m last year related to the writedown of the value of assets.
"The continuing uncertainty regarding the depth and length of the current downturn is considered a major risk for the business," the directors note in newly filed accounts for the business. CLG's managing director is Kieran Connors.
"The group has not identified any risk that is exceptionally high or different in nature from those in the general industry," they add.
"However, the group faces very strong competition in some markets, and if it fails to compete successfully, market share will decline."
The company has worked on major projects throughout the country.
In 2011, in conjunction with UK construction giant Balfour Beatty, CLG was awarded a near €500m nine-year contract by Bord Gais Networks for the installation and maintenance of gas transmission and distribution networks across Ireland.
"Group liquidity and cash flow is currently positive," noted CLG directors when they signed off the 2012 accounts last week. Shareholder funds at the end of June last year stood at just over €9m.
"However, the group continues to have high commitments to provide working capital to the new joint venture group Balfour Beatty CLG for the current gas contract with Bord Gais Networks," they added.
The directors said they were continuing to seek cost savings in the group.