Bowen hit by loss of €9.9m

BOWEN, the Cork-based construction company, made a loss of almost €10 million in its last financial year.

Newly filed accounts at the Companies Registration Office reveal the company made a loss of €9.9m in the 12 months to end March 2007 compared with a profit of €4.39min the previous financial year.

The company says it was disappointed with the move into losses in 2007, which was the result of an €8m writedown in a specific contract.

“On review of the company’s work in progress following the balance sheet date the directors believe that the company is likely to incur a significant loss on a specific contract.

“Consequently, for reasons of prudence, full provision for the work in progress and the foreseeable loss in the this contract has been included as an exceptional item in these financial statements for the year ended March 31, 2007,” a note to the company’s accounts stated.

The company’s directors said they planned to improve trading and profitability in the current financial year.

The €8m hit took the shine off the rise in the company’s turnover, which increased to €225.1m from €213.5m.

When the exceptional item is added to an increase in administrative expenses (from €8.7m to €11m), the company made an operating loss of €9.5m from a €4.9moperating profit in the previous year.

Shareholders’ funds at the company, as a result of the losses, fell to €11.8m from €21.7m.

According to the accounts, Bowen increased its workforce during the year from 269 to 315. This pushed up its staff costs from €22.2m to €25.7m, or just over €81,000 per employee.

Total directors emoluments increased to €4.17m from €3.29m. The company’s accounts lists 11 directors.

They are company founder John Bowen, Barry Crowley, Don Brockie, Michael Allen, Henry Looney, Kevin O’Connor, Fergus Collins, Michael Browne, Niall O’Meara, Patrick O’Brien and Sheila O’Connell.

Bowen’s clients include the likes of Pfizer, Dunnes Stores, Musgraves and Harvey Norman.