Readymix cements further losses
Concrete products group Readymix has reported a pre-tax loss of €20.4m in the first half of this year as demand for its products fell further.
Revenues fell by 24pc, while the group made an operating loss of €7m.
Readymix also took exceptional charges of €12.6m, including €12.7m linked to a fall in the value of its property, plant and equipment. This was partly offset by a €2.9m once-off gain due to the closure of defined benefit pension schemes in the Republic.
Readymix said its priority was further cost cuts, while it was also looking at selling off some of its assets.
The company said it expected very demanding trading conditions to continue into next year.
The results were as expected by analysts.
"The trading performance in H1 was broadly as we expected, so we will not be adjusting our forecasts," said Davy Stockbrokers' Robert Gardiner.
"We will, however, take into account impairment charges, which we estimate reduce net asset value (NAV) to 60c.
"This clearly weakens our NAV argument for buying the stock. However, we continue to believe the stock represents value at 14c per share."
Readymix closed flat at 14c.