Our aim is to survive, says quarry group director

The director of a Co Clare quarrying group has said his group’s aim is to survive the recession.

Joe McGrath of McGrath Quarries was speaking yesterday after confirming that the group broke even last year. He said: “That is a good achievement.”

According to accounts returned to the Companies Office by McGrath’s (O’Callaghan’s Mill) Ltd, the company recorded a pre-tax loss last year of €77,416 following a pre-tax loss of €147,598 in 2010.

The narrowing of losses followed the firm’s gross profit decreasing from €2.97m to €2.8m in the 12 months to the end of March last year.

Separate accounts filed for McGrath’s Concrete Products Ltd show that the firm recorded a pre-tax profit of €17,956 following a pre-tax loss of €103,687 in 2010.

This followed the subsidiary’s gross profit dipping from €3.7m to €3.5m.

The group employs more than 60 people and Mr McGrath said that as a result of the recession a lot of staff were on a three-day week.

He said the group had been able to break even “because of cutbacks. We have consolidated what we have. There is no growth in the construction industry”.

Mr McGrath confirmed that prior to the building collapse, the construction industry generated 90% of the group’s revenues, but now the agriculture sector accounted for 50% of the group’s turnover.

He said: “I don’t see any green shoots and our aim is to survive this recession and come out the other end.

“We’re surviving. The bills are being paid.”

The figures show that the group companies generated substantial profits during the building boom.

Accumulated profits at McGrath’s (O’Callaghan’s Mill) Ltd are €5.7m, though its cash last year declined from €112,184 to €11,489, while McGrath’s Concrete Products Ltd’s accumulated profits and shareholder funds stood at €7.7m, including €4m in cash.

The loss at McGrath’s (O’Callaghan’s Mills) Ltd includes a depreciation charge of €416,625 and the modest pre-tax profit at McGrath’s Concrete Products Ltd takes account of a depreciation charge of €747,661.

The numbers employed by McGrath’s Concrete Products Ltd dropped by one to 44 last year with staff costs declining from €1.5m to €1.4m, while at McGrath’s (O’Callaghan’s Mills) Ltd, numbers employed dropped by one from 26 to 35, with staff costs increasing from €904,248 to €982,088.

One of the McGrath Group’s main competitors, the independently-owned Whelan Group, was wound up by High Court order in Dec 2010.

However, Mr McGrath said the collapse of the Whelan Group had made no difference to business generated by McGrath Quarries.

“There is no work out there so it doesn’t make any difference.”