Tegral profits collapse 99%

PRE-TAX profits at building materials’ manufacturer Tegral collapsed last year by 99% from €12.33 million to €59,235.

According to documents just lodged by Tegral Building Products Ltd with the Companies Office, they show that the company’s turnover dropped by 44% from €72.8m to €40.8m to the end of December last.

The figures show that the Co Kildare company’s profits were hit last year by €3.2m in restructuring costs. The numbers employed at the company reduced from 239 to 193 last year. In June of this year, Tegral announced the loss of a further 41 jobs.

The company has provided for €8.6m to deal with asbestos and health claims and €1m was released under this heading during 2009.

Earlier this year, the company secured planning permission from An Bord Pleanála to construct a new €75m state-of-the-art production facility on a 38-acre site in Athy.

However, separate accounts filed by Tegral Holdings show that the company recorded a pre-tax loss of €11.5m that included an impairment loss of €9.8m on land the company purchased in 2007 in order to develop its new production facility.

The directors state that, due to the current economic uncertainty, the company has valued this land at net realisable value and, therefore, has recognised an impairment loss of €9.8m.

Tegral Holdings Ltd also recorded an impairment charge of €1.75m on its investment in a subsidiary, Tegral Metal Forming Ltd in 2009.

Tegral Building Products Ltd €3.2m spend on restructuring costs last year follows €1.8m spent on restructuring in 2008.

Tegral Building Products Ltd’s Irish business was hit much harder last year with its domestic revenues decreasing by 46% from €63.3m to €34m with European revenues down by 28% from €9.4m to €6.8m.

The company’s operating profits last year decreased by 94% from €10.1m to €559,986. Net interest payments of €500,000 reduced the company’s pre-tax profits to €59,235.

The filings include depreciation and amortisation amounting to over €1m.