Engineering firm’s ‘relatively good year’ despite profit fall

THE Limerick-based engineering group, Kirby Engineering stated yesterday that 2010 was “a relatively good year” for the group in spite of pre-tax profits declining by 34% to €1 million.

According to finance director with the Kirby Group Engineering Ltd, Derry McMahon, the pre-tax profit last year of €1m “was a good result in terms of the extremely challenging trading conditions. We are satisfied with the performance”.

The drop in profits follows revenues at the group decreasing by 14% from €67.5m to €57.9m in the 12 months to the end of December last.

Mr McMahon said: “There has been a slight increase in revenues this year and profits will be in line with the increase in turnover.”

The 2010 accounts also state the group — established in 1964 — reduced its workforce further last year to 381 from 424. At the end of December 2008, the company employed 612.

The main activity of the group — which has offices in Dublin, Cork, Galway and London — is electrical and mechanical engineering.

The group’s key clients in Ireland include Google, Boston Scientific, Ericsson, Abbott, Intel and IBM.

Mr McMahon said “strong revenues” were achieved through working with key clients and executing complex projects. He said the group had a strong balance sheet “and we will continue to maintain that”.

The figures show the company had accumulated profits last year of €12.5m and its assets included €9.4m in cash.

In order to increase revenues, Mr McMahon said the group has expanded its operation in Britain where it has carried out work with Shell and Dell.

The group’s operating profit last year was €855,605 and interest receivable of €205,753 added to the group’s profits. The directors last year recommended the payment of a final dividend of €95,230.

The pre-tax profit takes account of depreciation costs of €416,130. Staff costs last year came to €24.3m compared to €28.3m in 2009. Directors’ remuneration last year increased marginally to €1.25m.