PM Group reports turnover up 5.5%

IRISH engineering services and project management company PM Group shrugged off the effects of the economic crisis last year by posting a 5.5% rise in turnover and a marginal increase in annual pre-tax profits to €8.17 million, up from €7.9m in the previous year.

The Dublin and Cork-based business, whose turnover rose to €266.3m last year (up from €252.4m), attributed its success in 2009 to its strong presence in overseas markets — including Western Europe, Asia, North Africa and the Middle East — where it enjoyed a strong order book, rather than its Irish operations.

However, the bulk of the design work on these orders was carried out in its home-based operations, thus supporting its employment levels here.

“There’s little doubt that we’ve two very tough years ahead, with a rapidly changing marketplace, particularly in Ireland,” said PM chief executive Pat McGrath.

“The impact of the global economic downturn, generally, is to delay the client investment decisions upon which our business is largely dependent.

“However, having said that, the group’s geographic and sectoral spread, together with its global customer base, is proving resilient,” he said.

PM’s 2009 profits were boosted by the sale of its non-core IT division, PMI Software. The group also made two acquisitions, during the year, in the form of an architects firm in Britain and an engineering specialist in the US. In addition to this, new sales offices were opened in India, Belgium, the Czech Republic and Slovakia.

While 2010 revenues are likely to be in line with last year’s total, profits could be marginally down, sacrificed slightly for investment in overseas offices; a move which could continue next year, with China being targeted.

Despite being mostly reliant on large capital expenditure projects by multinationals, as much as 40% of PM’s annual revenues are derived from its Irish operations. This, is expected to change over the next couple of years (though its 900-strong Irish workforce is deemed to be safe), amid management confidence of increased overseas business.