Holding company Sicon returns to profitability

Sicon — the holding company for the Sisk group’s construction assets — has returned to profitability in its latest financial year.

When it posted its 2011 accounts — which showed a €153.6m pre-tax loss on the back of the high profile failure of the company’s Polish road building projects — Sicon said that the 2012 accounts would show a return to profitability.

Figures, published yesterday, show that Sicon generated pre-tax profits of €14m last year, with operating profits of €2.5m being realised after a preceding year which showed an operating loss of €105m.

Shareholders’ funds increased — last year — from €41.5m to €70.2m and the group’s cash and bank balances rose from €76m to €93.5m. While group turnover fell from just over €1.13bn to €824.6m; net debt levels were down by 41.4%, from €35.5m to €20.8m.

Management said it was happy with the performance of its divisions in Ireland and Britain, the group’s main geographical market, adding that all units have responded strongly to challenging environments.

According to Liam Nagle, Sicon’s chief executive: “The business is now performing well and to expectations. The UK is now our biggest market, while we maintain our position of strength in Ireland, with a foothold in the Middle East. We have a strengthened balance sheet, a strong order book and are well positioned to make progress in each of our markets in the coming years.”

Management added that it remains hopeful of retrieving some costs from its failure in Poland, where it has taken legal action against the Polish State. The company’s associate business, SRB, terminated two road building projects in the country, that it had been awarded in 2010 (with one completed) after difficulties encountered with Poland’s roads authority and local project partners pulling out.

The British market now makes up 48% of Sicon’s business, with Ireland accounting for 46% of sales and the Middle East 4%. The latter territory “made good progress” in the past year, with work beginning on two hospital projects in Abu Dhabi.