Sisk profits rise 17% to €38.6m

CONSTRUCTION giant John Sisk & Son saw its pre-tax profits rise by almost 17% last year.

Accounts for Sisk just filed at the Companies Registration Office (CRO) show profits rose by €5.5 million to €38.6m in the year to end December 2004.

Turnover at the group grew by €236.4m to almost €800m. The bulk of this was generated in Ireland.

Operating profits for the year were up by just under €2m to €34.1m, though profits from its stakes in joint venture companies added €4.55m to bring the pre-tax figure for the year to €38.6m.

The directors said in the accounts: "While margins were generally tighter in 2004, it was an excellent year in terms of volume growth and overall profits are ahead of 2003. The 2005 forecast indicates further growth in turnover with continuing pressure on margins."

The dividend payments to shareholders was cut in half, according to the accounts. Having paid out €47.2m in 2003, shareholders got just over €24.6m last year.

After the dividend payment, the company retained e9m in profits for the year. Accumulated profits stood at €89m at the end of 2004.

The company's balance sheet revealed it had built up cash of €94.4m and a shareholders' fund of €101m.

Creditors due within one year was €243m, while there was no long-term debt.

Payments to directors rose from €2.6m to €3.4m. The accounts lists the directors as: Bernard O'Connell (chairman), Tom Costello (managing director), James Doyle, Noel Golden, Paul Hackett, Patrick Horgan, Brian Keogh, James Tuohy and Colm Whooley.

The company increased its workforce during the year from 1,059 to 1,253. The increase pushed up the company's wages bill from €56.5m to €74.8m, giving an annual average wage of €60,000 per employee.

Sisk has been involved in major building projects over the past couple of years, including the Monasterevin bypass, which opened last year and the Dundrum shopping centre in Dublin. It is also involved in the residential construction market and in civil engineering. The company also operates in Britain, where it is involved in the redevelopment of Wembley Arena.