Explosives company’s profits boom

IRISH Industrial Explosives, which is celebrating 40 years in business this year, recorded profits of €14.23 million in 2003.

The profit was flat on the previous year even though the Meath-based company saw a fall in turnover, accounts just filed at the companies office show.

Turnover for the year to end December 2003 fell from €43.1m to €40.1m.

No reason was given in the accounts for the decline.

In the notes to the accounts, the directors said: “Both the level of business and the year end financial position of the group were satisfactory.”

Irish Industrial Explosives is 50% owned by the construction and building materials giant CRH and is the only licensed explosives manufacturer in Ireland.

It was founded in 1964 by Sean O’Sullivan and Paddy O’Neill and sells explosives and chemicals to Irish mining, quarrying and civil engineering firms.

After paying out a dividend of €9.63m to its shareholders, the company retained just €164,000 in profits for 2003.

The dividend figure was down some €3.3m on 2002.

The company’s balance sheet shows it has almost €4m in cash at its disposal and has accumulated profits of €15.5m.

The accounts reveal the company cut its workforce during the year from 144 to 125.

The cuts came from its production and distribution staff.

The cuts have reduced the company’s wages bill to €7.1m from €7.8m.

The salary figures includes the €301,000 paid to the company’s directors.

The directors are listed as Brendan Pigott, Karl Strecker, Patrick Clinton, Martin Macaodha and Nathaniel Cornet Philippe.

The position of IIE as the monopoly maker of explosives has been raised in the Dáil several times.

The Irish Examiner revealed last year that Cork businessman Louis O’Regan was looking to build a €10m explosives production facility in Munster.