British boost to Pierce profits

PROFITS at construction and civil engineering group Pierse shot up €3.5 million to €12.5 million in the year to April.

Accounts for Birmayne Limited, the group’s holding company, show turnover grew almost 25% on the previous year to €364 million. The improved bottom line allowed the company to bounce back after profits fell from €11.8 million to €8.9 million the previous year.

Revenues from Ireland grew by 15% to €294 million, but the company’s revenue stream from British projects almost doubled to €71 million. Britain now accounts for 20% of group turnover, up from 13% the previous year.

Around 70% of total income came from building contracts, where revenues grew 10% to €261 million. Civil engineering revenues grew 7% to €46 million, but the group’s property development revenues soared from €13 million to €55 million.

The company said its property development activities were set to increase in the current year and that work has already started on new contracts since year-end. “The group continues to seek out and pursue further investment opportunities and has successfully tendered for new building and civil engineering contracts,” according to a statement from the company.

The bill for wages and salaries remained flat at €47 million, but the total number of people employed by the group slid 10% to 735. The company employed 17 fewer managers and administrative staff, but culled its construction workforce by 65 to 442.

An administrator was appointed to the group’s loss making Timberframe Solutions business during the year and the company said it acquired a British building contractor, TPH Contracts, for a nominal sum.

A corporate reorganisation during the year resulted in Birmayne lending €40 million to Remayne Holdings, a new company whose board consists of three Birmayne directors.

Total dividends paid by the company to shareholders remained unchanged at €250,000.