Readymix suffers €6.6m losses for first half of the year
Concrete products group Readymix says exceptionally challenging trading conditions since the second half of 2007 have worsened this year.
The company yesterday reported a pre-tax loss of €6.6m for the first half of the year.
Revenues from operations were down 30pc compared to the same time last year. Total aggregate revenues have declined by 31pc due to market conditions. Concrete, blocks and other revenues have declined by 24pc.
The company is expecting little improvement in the situation, stating that the "demanding trading conditions" will continue for the rest of the current year and into 2011.
"The recession continues to severely impact Irish construction, with a weak housing sector, a marked deterioration within the commercial area and an ongoing lack of certainty regarding the extent and timing of government infrastructural spend," the company said.
Among its main risks, the company noted a high level of competition for reduced market volumes, increased debtor default risk and the severe negative impact of the recession on Irish construction.
Volatility in fuel, energy and other commodity costs had also contributed to the company's loss-making performance.
It pledged to continue its cost-cutting campaign and said it would refrain from undertaking any major capital projects, adding that it would look into disposing of its non-core assets. It is not recommending a resumption of dividend payment to conserve cash.