Readymix has issued its first interim management statement today, revealing a drop in demand for its products.
As a consequence of the sharp deceleration of activity within the construction sector, demand for Readymix products has reduced and the challenging trading conditions experienced in the latter half of 2007 have continued into 2008.
This slowdown is having an impact on the group’s profit before tax, with the Board expecting a €3.9m loss for the first quarter of 2008. Included in this estimate is a €1.8m loss from the sale of plant and machinery associated with the closure of the pipes and tiles business unit. Volumes during the quarter have been affected by a combination of the continued weakness in the residential sector and a reduction in operational days due to the earlier Easter holidays.
As a result of recent market developments, Readymix has completed an optimisation programme which included the rationalisation of assets to improve efficiency, lower operational overheads and reduce personnel costs.