SIAC builds profit to €4.5m

SIAC, the civil engineering and construction group, has reported an 11% increase in pre-tax profits to €4.5m for last year, up from just over €4m in 2003.

Turnover from continuing businesses rose to €163m as the group continued to increase its presence in the construction of Irish infrastructure, mainly roadways.

SIAC is currently involved in the Kilcock to Kinnegad public private partnership project with Spanish partner Ferrovial. It says this work is ahead of schedule and the motorway will open in December.

The partnership has also been chosen to negotiate a deal for the 60km M3 Clonee and Kells motorway.

Group finance director, Terry Ryan, said the group regards its joint venture partnership with Spanish group Ferrovial Agroman SA as being critical to the evolution of the group.

Its commitment is to quality and safety and the success of the past few years in winning the Irish roads contracts is testimony to its business philosophy, said Mr Ryan.

SIAC has been owned by the Feighery family since the 1950s and some of the family are still active in the business, which is headquartered in Dublin.

Turnover peaked in 2002 at over €204m but declined in each of the last two years to €178.2m and in the year under review to €163.4m.

Its earnings over the period have remained pretty solid at the earnings before interest, taxes, depreciation, and amortisation (EBITDA) level, at over 9m in each of the three years, however.

At the pre-tax level, profits rose year-on-year and the group is confident the profit trend will be maintained in the years ahead.

Civil engineering accounts for about 40% of group turnover.

Specialist building sub-contracting makes up 50% and commercial developments and property rentals make up the remaining 5% each of group sales.

In its annual report the group highlights the significance of its civil engineering division, accounting for 300 of its 700 workers.

“Its evolution and development has positioned SIAC as one of Ireland’s largest civil contractors,” according to Mr Ryan, which is how the group regards itself.

Prior to its current road contracts SIAC has carried out the N15 Ballyshannon Bundoran Bypass and has also been involving the Balbriggan Skerries waste water treatment plant.

Looking to the future group chairman, Ciaran Feighery, said order books are satisfactory and “we look forward to a busy and rewarding year.”