John F Supple cuts losses by more than €6.6m but outlook ‘challenging’

CORK construction firm John F Supple have reduced their annual losses significantly, but they said the outlook remains challenging.

Accounts just filed for John F Supple Limited for the year ended September 30, 2009, show that pre-tax losses were almost €8 million compared with €14.6m in the previous year. In 2009 turnover was €11.7m after plunging from €127.1m in the previous year.

The company said its ability to continue as a going concern is dependent upon the continuing support of NAMA.

It said it has engaged with NAMA and has submitted its business plan with a view to reaching a memorandum of understanding with the agency.

“The main contracting business continues to trade in a very challenging environment. The construction sector and general economic conditions in Ireland deteriorated progressively during 2009 and the directors have reduced overheads and are constantly reviewing the company’s cost base in line with its turnover,” the accounts read.

No dividends were paid during the year. Between June 2007 and July 2008 the company paid dividends of €552,341 to shareholders who are also directors of the company.

The directors view the risks and uncertainties facing the business to include the performance of both the world and national economies, the level of government spending on infrastructural projects, the availability and cost of finance and the potential impact of NAMA.

The company reduced its staff numbers significantly in the year from 101 to 49. Staff costs fell from almost €16m to €3.8m. Directors emoluments fell from €877,573 to €238,189.

The accounts said that, as in 2008, the directors have taken a cautious view with regard to provisions for bad debt and the realisation of the company’s work-in-progress. A total of €7m (2008: €12,125,359) was provided for during the period in this regard.

John F Supple was established by Barry Supple in 1987. Its registered office is at Bishopstown, Cork.