Parsons Engineering to expand in Ireland

PRE-TAX losses at Cork-based Parsons Engineering significantly reduced last year, but the company is planning to expand in Ireland.

The Irish arm of the US-based firm saw pre-tax losses hit €1.2 million last year compared with losses of €2m in 2009.

In its latest set of accounts, the company said the losses reflect the impact of the economic downturn on its existing and prospective customer base.

In a positive development, the firm said it plans to maintain its activities in Ireland and seek opportunities to expand its activities into new areas of business.

“The company is aware of the major risks to which the company is exposed, in particular those related to the operations and the finances of the company and are satisfied that systems are in place to mitigate exposure to major risks,” the accounts read.

In an “emphasis of matter” statement, the auditors said the losses indicate the existence of a material uncertainty which may cast doubt about the company’s ability to continue as a going concern.

Turnover in the year was down from €6.7m to €2.5m.

Staff numbers reduced from 30 to 23 last year with the wage bill dropping from €1.8m to almost €1.6m.

California-based Parsons, which employs 12,000 people worldwide, acquired Cork-based MW Consultants in 2004. The companies did not disclose at the time what price was paid for MW Consultants, which had 60 on the payroll.