Readymix considers assets sell-off

READYMIX is considering the sale of certain non-core assets in the wake of the economic and property market downturns eating into product demand and financial results in the first half of the year.

The Dublin-headquartered cement products and building materials company – which is mostly owned by international group, Cemex – yesterday reported a pre-tax loss of €6.9 million for the first six months of this year.

However, that interim loss has narrowed from the same time last year when the loss was just over €9.6m.

The company’s operating loss also fell – down from €9.7m at the halfway stage last year to €7.07m this year.

The loss per share fell from 7.36c to 5.63c, but overall first half revenue was also down by 45%, year-on-year, at €41.6m.

No interim dividend (1.65c was paid to shareholders at the halfway stage last year) has been declared this year, as the company looks to preserve assets.

In his half-year review, Readymix’s non-executive chairman Adrian Auer said that the tough trading conditions witnessed over the last two years “have further worsened” in 2009.

“Demand for group products continues to contract, arising from the exceptional weakness of the housing and commercial construction sectors,” Mr Auer said.

He added that the company expects the “very demanding” trading conditions, which are currently evident, to continue for the remainder of this year and run into next year.

He said this would be a result “of the weakness in the housing and commercial sectors and the delayed start of new infrastructure projects.”

“The group remains willing to consider appropriate disposal of a range of non-core business assets. However, given the present weakness in the economy, any sales will only be agreed where it is felt that realisations add value to shareholders,” Mr Auer said.

Readymix’s share price was down by 1c yesterday, at 16c, just 5c above its 12 month low.