John Paul Construction profits plunge 64% to €3.1m

PROFITS before tax at John Paul Construction, one of the country’s largest building firms, plunged 64% to €3.1 million last year.

The company said however that despite the sharp fall in profits it will remain profitable this year.

According to accounts just filed the company’s directors said the 2008 financial year was a “challenging year” for the group due to a difficult economic climate and a shrinking market.

It said that despite this the group’s performance was “satisfactory” with a turnover of €135m from €216m in 2007.

“The directors are of the opinion that the outlook for 2009 is difficult as a consequence of a much reduced level of activity and downward pressure on margins in both the building and civil engineering sectors.

“The directors are confident however, that activity levels will be close to those of 2008 and that the group will remain profitable. The group’s focus will be to continue to grow its market share in the regions of healthcare, retail and civil engineering sectors,” the accounts read.

Operating profit was down from €8.3m to almost €2.9m. Directors’ remuneration and pensions in the year fell from €2.5m to €2.1m. There are four directors listed in the accounts – Donal O’Brien, Eamon Booth, Donal Winters and Conor O’Donnell.

A dividend of €149,000 was paid during the year.

The company employed 265 people at the end of last year, down from 294 in 2007.

The accounts show the group has entered into a contractual agreement to purchase apartments in 2008. Amounts totalling €4.7m have been paid to date and a further €8.8m is due to be paid during 2009.

John Paul Construction was founded more than 50 years ago and remains one of the biggest commercial building and civil engineering contractors in the state.

It has built projects such as the school of nursing at Dublin City University and the Independent Newspaper printing plant.