Sale helps Gama to record €10m profit

CONTROVERSIAL Turkish construction company Gama has recorded a profit at its Irish operation following the sale of part of its stake in the Tynagh electricity plant in Galway.

The company, which has faced accusations of underpaying Turkish workers in Ireland, made a profit of €10.1 million in 2006 compared to a loss of €44.9m in the previous year, newly-filed accounts show.

But the profit is mostly down to the gain in the sale of its 40% stake in the 380 megawatt Tynagh plant to a subsidiary of US industrial giant General Electric in April 2006. Excluding the exceptional gains Gama remained loss-making at operating level.

According to the accounts operating losses in 2006 rose to €48m from €40m as turnover dropped to €81.8m from €95.8.m

The accounts were signed off on as on a going concern basis as its Turkish parent continued to provide it with financial support.

The company said that it was working on three major projects: the Ennis bypass, the Monaghan bypass and the Balgaddy C road in Ballymun in Dublin.

Despite the profit in 2006, the company had retained loss of almost €50m. No corporation tax was paid by Gama.

The accounts also reveal that Gama’s two-year dispute with Foster Wheeler, the principal contractor on the Shannonbridge and Lanesborough power stations, has ended with Gama writing off €8m in assets.