Pre-tax profits at Bennett Construction fall 77% to €122k

Pre-tax profits at building firm Bennett Construction last year declined by 77% to €122,202.

Accounts just filed by Bennett (Construction) Ltd to the Companies Office show the firm’s pre-tax profits dropped from €543,910 to €122,202 in the 12 months to the end of Mar 31 last year.

The Mullingar-based firm’s revenues declined by 43% from €70.5m to €40.1m, although revenues from its overseas operations increased substantially as the firm responded to the downturn in construction in Ireland.

Revenues from the company’s Irish operations more than halved from €69.6m to €32.3m, while the firm’s revenues from Europe increased from just €840,286 in 2010 to €7.82m last year.

The results for 2011 compare to the firm recording revenues of €180m in 2007 with profits of €4.5m — at that time, the firm employed 218.

At the end of the year, the company’s balance sheet remained strong with the firm having accumulated profits and shareholder funds of €16.8m that included €9.3m in cash.

Bennett Construction operates across a broad range of sectors including residential, commercial, industrial, healthcare and pharmaceutical.

One of the firm’s projects include the €8m fit-out of Ebay’s 60,000ft European headquarters in Dublin.

The profit last year takes account of €243,990 in depreciation costs.

The filings show that the numbers employed by the firm last year dropped from 93 to 68 with the company’s employment costs decreasing by 25% from €6m to €4.5m.

The company’s founder, Christopher Bennett, retired last May, along with John Bennett. Christopher Bennett also reduced his shareholding in the company’s ultimate parent, Hume Estate Co, to zero during the year from being the majority shareholder.

Jim and Stephen Bennett were appointed as directors last year.

The figures show that the aggregate remuneration for the firm’s directors last year fell from €1.5m to €959,677.

The company’s cost of sales declined from €64.3m to €36.3m with administrative expenses declining from €5.4m to €3.6m.

The amounts owed by the company to its directors increased from €975,460 to €1m during the year.

In response to downturn in construction in Ireland, the firm has expanded its overseas operations.