Losses almost double at Parsons Engineering

PRE-TAX losses at Cork-based Parsons Engineering almost doubled last year as a result of the economic downturn.

The Irish arm of the US-based firm saw pre-tax losses drop from €634,232 in 2007 to €1,193,206 last year.

Turnover increased, however, from €9.5 million to €14.8m.

According to accounts just filed for the company it said the loss incurred reflects the impact of the economic downturn on the company’s existing and prospective customer base.

California-based Parsons, which employs 12,000 people worldwide, acquired Cork-based MW Consultants in 2004.

The companies did not disclose at the time what price was paid for MW Consultants, which had 60 staff on the payroll. The principal activity of the company is the provision of engineering and consultancy services, according to the accounts.

The company did not engage in any research and development activities during the year, it said.

Also the company said it plans to maintain its activities in Ireland and seek opportunities to expand its activities into new areas of business.

Staff employed by Parsons in Ireland fell from 51 in 2007 to 38 last year and staff costs dropped from €3.1m to €2.4m.

Gross profit was down from €1.8m in 2007 to €1.2m last year.

The accounts also read: “The directors, after making enquiries and having regard to the company’s financial position, expected trading performance and finance available to the company, have a reasonable expectation that the company has adequate resources to continue operating for the foreseeable future.