Pre-tax losses at engineering giant fall despite revenue slip

Pre-tax losses at the Irish arm of international firm Jacobs Engineering last year decreased by 53% to €1.5m.

According to accounts filed by Jacobs Engineering Ireland Ltd to the Companies Registration Office, losses decreased from €3.4m to €1.59m in spite of revenues dipping by 6% from €79.9m to €75.3m in the 12 months ending September.

The numbers employed in Cork and Dublin by the US-owned group last year declined from 322 to 317 with staff costs decreasing from €25.3m to €24.9m.

According to the directors’ report: “During 2011, we have seen an increase in projects and prospects related to foreign direct investment in our traditional core markets of pharmabio and high-technology sectors.”

It goes on: “The board is confident that 2012 will show growth and improved results as we are well positioned to gain market share in all sectors as projects, previously delayed, will move ahead in 2012.”

It said the economic climate was “expected to continue to pose significant challenges” but that the company was “well placed for the coming year”.

The principal activity of the firm is to provide full service consulting, planning, engineering, architecture, design, and construction field services.

The firm did not pay a dividend last year after paying a dividend of €13.7m in 2010. The directors’ report cautions that “any further reduction in the national economic growth may adversely affect the company’s revenue and margins”.

The loss last year reduced the firm’s accumulated profits to €2.9m. Shareholder funds totalled €5.2m. The firm’s cash during the year reduced from €9.7m to €6.4m.

Five directors served during the year and the figures show that directors’ remuneration last year increased from €511,090 to €533,382. The loss last year takes account of non-cash depreciation costs of €457,040.

Cost of sales decreased from €72.3m to €67.1m.

The firm’s operating losses fell 47% from €3.1m to €1.6m.

Its financial performance was helped by finance charges falling from €348,000 to €13,000.

Globally, Jacobs employs 60,000 and its 2011 revenues topped $10bn (€8.1bn).