Profits decline at industrial explosives firm Kemek

Pre-tax profits at industrial explosives firm, Kemek Ltd last year fell 33% after the group suffered a further slump in sales.

Wed, 17 Oct, 2012 - 01:00

Gordon Deegan

According to accounts just lodged with the Companies Office, they show pre-tax profits at Kemek Ltd reduced by one third from €1.2m to €812,000 in the 12 months to the end of December last.

The Maynooth-based group is engaged in production and distribution of commercial explosives.

This followed revenues at the group — half-owned by building materials group CRH — reducing by 15% from €15.5m to €13.2m last year.

According to the directors’ report, “2011 saw a consolidation in the contraction of the market and challenging trading conditions”.

The report adds: “The company continued to restructure its operations allowing it to reduce costs and match capacity to market demand.

“The cut in the capital spending programme coupled with the collapse in the housing market will result in a continuation of very challenging trading conditions in 2012.”

The group’s profit has declined steadily during the recession — in 2008, the group recorded pre-tax profits of €12.8m.

The figures show that the group paid a dividend of €379,000 last year.

The filings show that the group’s accumulated profits last year stood at €10m, with shareholder funds standing at €11.4m.

The group’s cash last year decreased from €3.1m to €2.6m.

The figures show that the numbers employed by the group last year declined from 55 to 44, with staff costs last year down 22% from €4.6m to €3.6m.

A breakdown of the staff numbers include 18 in administration, 11 engineers, 10 in distribution, and five in production. Redundancy costs fell last year from €615,000 to €302,000.

The accounts show that the group recorded an operating profit of €720,000 last year compared to €1.1m in 2010.

Cost of sales last year fell from €7.5m to €6.9m, with operating expenses decreasing from €6.8m to €5.6m.

The profit last year takes account of non-cash depreciation costs totalling €1.57m. Emoluments to directors last year reduced from €301,000 to €219,000. The figures show €3.4m of sales last year were to companies in the CRH group.