MacDonald back in the black with €593k profits

The business of the Irish arm of engineering consultancy firm, Mott MacDonald, bounced back last year to record pre-tax profits of €593,327. 

This followed revenues at Mott MacDonald Ireland Ltd increasing by 27.5% from €15.94m to €20.32m in the 12 months to the end of December last.

The pre-tax profit last year represented a positive swing of more than €1.1m from the €529,019 pre-tax loss recorded in 2012.

The increased business also resulted in numbers employed at the firm increasing by 20%, going from 102 to 123 with staff costs increasing from €8.82m to €9.25m.

According to the directors’ report “after a number of difficult trading years the results for 2013 were much improved on previous years”

The UK-owned firm has worked on the Government’s inter-urban motorway programme and the Luas in Dublin.

The directors state that initiatives that were put in place in 2011/2010 to reduce costs and position the company to trade more successfully in the future continued in 2012 and 2013.

The report adds: “Also, securing major transportation projects in Ireland in 2012, along with a significant energy project in Ireland and energy projects in Jordan, Mauritius and Mozambique and UK on top of continued activity in transportation in Norway and flood alleviation in Ireland, have all made a positive impact on trade.”

The forward order book for the next 12 months is relatively good with almost 88% of the 2014 budget contracted.

The report states: “Business remains challenging but the directors and our ultimate parent are confident that 2014 should see continued improvement in our financial performance.”

The firm recorded an operating profit of €738,631 following an operating loss of €381,651 in 2012. Finance costs and net interest payments totalling €145,000 reduced profits.

The profit last year reduced the firm’s accumulated losses to €4.23m. The firm’s cash last year increased more than four fold to €1.8m

Professional staff totalled 101 with six in management.

Remuneration, including pension payments, for the firm’s six directors last year increased from €845,022 to €946,808.