Pierse Group directors remain upbeat despite €9m plunge in pre-tax profit
Accounts just filed for Birmayne, the holding company for the Pierse Group, show pre-tax profits down to €1.53m from €10.8m in the previous 12 months.
No specific reason was given in the accounts for the fall in profits, though the company’s cost of sales increased year-on-year.
Turnover at the company, which is owned by Ged Pierse, increased to €463.9m from €457m but with higher cost of sales, gross profits were cut to €18.6m from €29.7m.
The company’s directors were upbeat about its prospects for the coming year, noting that it was seeking new contracts and stepping up its property development activities.
“The board is confident that the group is well positioned in each of its markets to secure adequate contract and development opportunities to continue the growth of the group,” the company’s directors said.
They added that at the April year-end the group had €470m of turnover to complete on existing contracts and had since secured turnover of more than €290m, including several large government contracts.
According to the accounts, the company is less reliant on its activities in Ireland. Turnover from businesses in Britain grew close to €41m to €129.6m. Turnover in Ireland fell from €368.8m to €334.3m.
Construction continues to be Pierse’s main source of income, rising from €329m to €342m. Civil engineering projects added to group turnover (up from €74.9m in 2006). It generated €26m from property development and €3.7m from property rental.
Staff numbers rose by 20 year-on-year to 783 and the average salary is nearly €68,000. Directors’ emoluments rose to €1.8m from €1.63m. The directors are listed as Mr Pierse, Norbert O’Reilly, Michael Flick and Ferghal O’Nolan.
No dividends were paid out during the year. The company paid out dividends of €2.5m in the previous financial year.
