Siteserv goes on the block as shareholders set to lose out
Siteserv, which saw its market capitalisation plunge from over €50m during the heady days of the boom to almost zero today, has been put on the block.
Davy, the Dublin stockbroker, and KPMG, the accountants, are seeking a new owner for the traffic-light repairs to scaffolding and infrastructure business.
The Irish Stock Exchange listed company, which employs 2,000 people in Ireland and Britain will be sold at a significant discount to its bank debt of about €150m. A bidding process is understood to be under way, with the support of some of its key management.
Hundreds of shareholders in the stock, which now trades at close to zero, are unlikely to receive any payment directly from any sale.
After suffering badly initially during the recession, Siteserv turned in an operating profit of €4.8m in the six months to the end of October 2011, up 4 per cent on the previous year. The company was boosted by developing new customers, like a three-year Irish support services business with BSkyB in Ireland worth €60m, and expanding into the UK.
Siteserv's revenues, which surpassed over €150m during the boom, were €92m last year, a year-on-year rise of 9 per cent.
The company is led by Brian Harvey and chaired by Hugh Cooney, the veteran accountant. It was one of a number of companies that Niall McFadden's Boundary Capital held stakes in during the boom, with others including department store Arnotts.
Sunday Indo Business