Sisk profits dip 21% in competitive market

PRE-TAX profits at the Sisk Group slumped 21.5% to €64.2 million last year in what the company called a competitive market.

Turnover increased by 8.3% to €1,810m while operating profit was down 7.3% to €52.1m in the year to the end of December 2007.

The group, which is one of the country’s largest building firms, said this was a strong performance in a general uncertain economic climate.

It also said it may consider expanding outside of Ireland, Britain and Belgium.

Newly appointed group chief executive Liam Nagle said the profits slump last year was due to a disposal of assets in 2006.

He said his main worry in the years ahead is the uncertain economic climate in Ireland and ensuring that the group takes every opportunity to win new business.

“While there was a marked downturn in the residential construction sector in Ireland and the UK, the group’s exposure to this sector is relatively low.

“The contribution of the construction division to overall group profitability had been very positive, and represented a very strong performance in an uncertain market environment,” he said.

The group said it has a large order book with a range of construction and infrastructure projects in the pipeline. It said last year was one of development and expansion and a year when it completed three acquisitions.

Mr Nagle did not rule out looking for other opportunities for acquisitions in the near future.

“While targeted acquisitions were a key focus in 2006 and the early part of 2007, we are extremely focused on trading successfully in a number of highly competitive market sectors. Our vision is to create a diversified business based on our values of quality and service and to be the partner of choice for our customers and all our partners,” he said.

Sisk has divisions in the trading, healthcare, property and investment sectors. The company will celebrate its 150th anniversary next year.