Losses rise for building group

LOSSES continued to mount at the group operated by Limerick timber tycoons, the McMahon family, last year, as pre-tax losses at the group totalled €6.2 million.

Documents just filed with the Companies Office by Derevoya Holdings Ltd and subsidiaries show the €6.2m loss followed a pre-tax loss of €6.6m in 2009.

The filings show that the company recorded the loss in the 12 months to the end of December last after revenues at the group declined by 12% from €77.2m to €67.7m.

Derevoya’s main asset is the McMahon Group, Ireland’s largest timber supplier, but the company also holds other investments and property.

The figures show that the chief factor behind the group’s losses was €4.8m in exceptional costs that related to impairment of property, redundancy payments and the closing of the defined benefit pension.

The returns show that numbers employed by the group dropped last year by 22 from 254 to 232 with the group’s staff costs decreasing from €9.4m to €8.1m.

According to the directors’ report “all of the group’s activities are associated with the construction sector which continues to experience a slowdown in activity.

“This reduction in activity was matched by a continued reduction in the cost base during the year and resulted in a reduced operating loss for the year compared to the previous year.”