Readymix reports loss of €47.3m

CEMENT products and building materials company, Readymix has warned that this year will see it make further operating losses — albeit at “substantially” reduced levels to the heavy losses it has just posted for 2008.

The company yesterday reported a pre-tax loss of €47.3 million for last year; compared to a pre-tax profit of €28m for 2007.

Operating losses of €46.7m were also reported, compared to an operating profit of just under €10m for the previous year.

Revenue for 2008 amounted to €132.8m, down from €169.7m in 2007 and there was a loss per share of 35.87c, compared to earnings per share of 19.53c a year earlier.

The company added that no final dividend will be recommended this year; which would make the total dividend for shareholders 1.65c per share.

It also said that while it has identified “certain assets for potential disposal”, further disposals will only be completed “when proper shareholder value can be realised”.

While the company said that “every opportunity” will be taken to adjust the size and shape of the business to meet market needs, it is understood that the majority of job cuts — 52% of group head count has been reduced since the beginning of 2007 — have already been implemented.

“The weakness in the housing and commercial construction markets was both dramatic and sustained and resulted in sharply reduced demand for all of the group’s products,” the company’s chairman, Adrian Auer said.

However, Mr Auer added that management remains confident that the business can “withstand the present economic conditions and return to profitability”.

“As an essential condition for returning the group to profitability in future years, the short-term focus must continue to be on the stewardship of the group’s cash position.

“However, we must not lose sight of the need to create a lean and dynamic organisation with the assets and personnel in place to service the future needs of the construction sector in Ireland and the Isle of Man,” he added.