Building firm’s operating profit up 41%

Operating profits at the building group that recently completed the €7m refurbishment of the Morrison Hotel increased by 41% to €5.3m in 2011.

This followed revenues at PJ Walls (Holdings Ltd) and subsidiaries increasing by 14%, from €169m to €193.7m, in the 12 months to the end of 2011.

However, a writedown of €17.4m in assets resulted in the group recording a pre-tax loss of €9.9m — down from the €37.8m loss in 2010 that arose from a writedown of €44.4m.

Walls Construction is currently completing the ninth and final phase of the Google Montevetro Offices fit-out and in the past, constructed the O2 Arena.

According to the directors’ report, the directors “are confident that the market is levelling out and that recovery is imminent and as such, they view the future with increased optimism”.

A spokesman for the group said yesterday that it “had another successful year in 2012, whereas turnover was down marginally on 2011 due in the main to the timing of the commencement of contracts won”.

He said: “The outlook going forward is positive, with 2013 having started strong and the market indicators providing renewed confidence in terms of activity and margins.

“The group’s construction activities achieved a positive operating profit performance in 2012, a trend that is projected to continue in the current year.”

A note attached to the accounts states that the group has reached an agreement in principle with Nama and its other relevant banks to restructure financing arrangements as part of revised three-year facilities.

The firm’s net assets totalled €10.2m, with cash reserves of €25.2m. The loss in 2011 takes account of non-cash depreciation costs of €858,268. The accounts show that the group had total bank borrowings of €93.8m at the end of 2011.