Supple hopes to trade out of loss

CORK construction firm John F Supple expects to trade out of its current difficulties, despite recording pre-tax losses of €14.6 million in the 21 months to the end of September 2008.

The company is this month scheduled to pay almost €3.4m to its creditors as part of a survival deal hammered out last year.

This is the second instalment of money due under an arrangement in which it is understood the company has agreed to pay 75c of each euro owed to creditors in three separate stages.

Accounts just filed by the company covering the 21-month period to September 2008 show turnover of €127m and an operating loss of €13.2m.

The directors in their report said the main contracting business continues to trade in a “very challenging” environment.

However, they said they remain confident that these difficulties can be overcome with prudent management.

“We have reduced overheads and are constantly reviewing our costs base to effect savings. We continue to be highly dependent on Government spending to ensure projects proceed and competition for these contracts has intensified significantly,” the accounts read.

They also said they have postponed a number of property development projects for the foreseeable future.

“The uncertainty around market conditions continues and the effect NAMA may have on the construction and development sectors in Ireland remains to be seen. “We continue to communicate with our funding banks to ensure that existing facilities remain available to the company during these difficult times,” the directors’ report read.

Director at the company, Patsy Supple refused to comment yesterday.

Dividends were paid to shareholders during the 21-month period and a decision was taken in July last year that no further dividends would be paid until the trading difficulties being experienced by the company are overcome.

There were 101 people employed at the company at the end of September 2008 and staff costs in the period were almost €16m.

An exceptional item is listed in the accounts, which refers to the provisions against work in progress and development land of €19.5m. This, it said, is partially offset by the money owed to creditors.

The directors said it was appropriate to prepare the financial statements on a going concern basis. They said they have reviewed financial projections covering a period to December 2009 and on the basis of this review of resources, believe that the company will have sufficient resources to continue.

In an “emphasis of matter” the company’s auditors, Deloitte and Touche said that in respect “solely” of the limitation of its work relating to the assessment of the appropriateness of the going concern basis of preparation of the financial statements they “have not obtained all the information and explanations we considered necessary for the purpose of our audit”.