Bowen doubles pre-tax profits to €6.8m

ONE of the country’s largest construction companies, the Cork-based Bowen Construction Ltd last year almost doubled its pre-tax profits to €6.8 million.

According to accounts just filed with the Companies’ Office, the company recorded the 88% increase in pre-tax profits after an exceptional item of €3.2m owed to group companies was forgiven during the year.

The filings show that the company increased its turnover by 25% from €173m to €217m last year.

However, the accounting period for 2007 was only nine months compared to 12 months to the end of 2008.

The Little Island-based company has been involved in the construction of the Mahon Point Shopping Centre, Cork airport business park and a wide range of projects in the commercial, industrial, roads, tourism, medical and residential sectors.

The directors state that they “are pleased with the company’s performance during the year. Plans for the year ended December 31, 2009, are for further expansion of the company and the continued improvement of the company’s trading performance and profitability”.

The filings show that the company’s operating profit last year increased marginally from €4.25m to €4.37m. The accounts show that the company’s cost of sales increased by 26% from €159.4m to €200.9m.

The returns show that at the end of the year, the company had accumulated profits of €22.5m.

The directors also state that they have “reviewed the recent sudden deterioration in the financial and economic environment which has occurred since year end and are aware of the market conditions in which the company now operates”.

The directors value the company’s work in progress at €50m and they state that the valuation of work in progress “is subject to uncertainty due to the downturn in the property market”.

The directors state they have carried out a detailed review of works in progress and are of the opinion that the company will realise nothing less than the €50m value.

They reveal that work on an €11.7m contract has stopped due to funding difficulties faced by a client, but express confidence that construction will recommence and the development be completed by the year end.