Construction firm says future opportunities ‘lie abroad’
Finn Leyden, chief executive of SIAC Construction, was commenting after accounts returned to the Companies Office showed the majority of its business is now done in Poland.
The group’s pre-tax profits fell by 8% from €10.88m to €9.9m in the 12 months to the end of December, in spite of revenues increasing by 9% from €137.6m to €150m.
The firm ramped up its activity in Poland, where its revenues increased from €8.6m to €86m last year. The firm’s Irish business more than halved from €128.8m to €55m last year. Revenues from Britain rose from €161,000 to €8.7m. Group total revenues last year increased by 13% to €230m, with €97m generated in Ireland.
Mr Leyden said that pre-tax profit at the entire group remained stable at €5m.
“Nearly 60% of the group’s activities are now outside of Ireland. Three years ago, this was only 16%.”
He said that the group has a strong cash position with cash balances of €24m.
Mr Leyden contrasted SIAC’s current business with 2008, when €346m of its €414m revenues were generated in Ireland.
“Our civil engineering business remains healthy in Ireland with ongoing projects in waste water treatment, flood defence and urban renewal works,” he said. “We are also delivering significant motorway schemes on the N25, N4 and M1.”
Mr Leyden said that the firm’s Polish work mainly consists of a 50/50 joint venture in a €450m contract to build a 36km motorway linking southern Poland to Ukraine.
“We know that in the future, most of our development opportunities will take place outside of Ireland.
“We are adjusting to the current environment and I am confident for the company’s future,” he said.
Mr Leyden said that the Irish taxpayer received goodvalue for money in the cost of constructing the road system.
“The cost would have been €4m per km and in Poland the construction costs for its road would be between €6m and €8m. That is a huge difference.”
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