Civil engineering firm sees pre-tax profits fall by 8% last year in spite of revenue increase

PRE-tax profits at one of the west of Ireland’s largest civil engineering firms decreased by 8% in 2009 to €641,782 in spite of an increase in revenues.

The Co Mayo-based Wills Bros Ltd was one of the firms involved in constructing the controversial M3 motorway project and more recently completed the €207 million phase of the Atlantic Corridor, by-passing Gort and Crusheen in a joint venture project with SIAC Construction.

The figures show that the company’s revenues in the 12 months to the end of last December increased by 58% from €54.6m to €86.7m. However, the 2008 revenues represented only a period of eight months.

The directors state, in the company’s latest set of accounts, that they “are satisfied with the turnover and profitability for the year”.

“Due to current economic conditions, the company expects to operate at a decreased level of activity, but anticipates that profitability can be maintained,” they added.

At the opening of the Gort-Crusheen bypass last November, SIAC chief executive, Finn Leyden said the project would be the last joint venture between the SIAC and Wills Bros — hitting out at the Government’s cutback in funding for its roads programme.

The figures show that revenues from Will Bros’ joint venture turnover more than doubled in 2009 from €15.9m to €32.9m, with the 2008 figure being for the 12 months of the year.

The Foxford-based firm is a family-run business and the accounts show that Wills Bros received 45% of the joint venture’s turnover and profits.

The filings show that the company’s operating profits increased in 2009 by 8% from €858,515 to €924,953, but the firm’s profits were hit by higher interest payments last year totalling €287,907 compared to €197,195 in 2008.

The figures also show the company’s wage bill increased by 29% from €9.9m to €12.8m. Directors’ emoluments, in 2009, increased by 8% to €532,584 and that included pension contributions of €400,000.