Sisk construction arm stays profitable

Irish construction group, Sicon is anticipating this year will see its activity levels increase by 10%, with the recovery in the UK building market driving that growth.

The business — which acts as the holding company for the Sisk group’s construction assets — yesterday published its latest annual accounts, showing a second consecutive year of profitability in 2013.

In 2011, the company had posted a near €154m pre-tax loss on the back of the high-profile failure of its Polish road building projects.

No further losses will arise from the Polish operations and it is still pursuing monies it believes it is owed through legal processes. If successful, these payments will be recognised in future years’ accounts.

Yesterday’s accounts showed that Sicon saw a 216% jump in operating profits — to €7.9m — in 2013; with net debt falling from €20.8m to just over €15m.

However, turnover from continuing operations fell from €852m to €774.4m and pre-tax profits fell by nearly 90% from €14m to €1.5m. The pre-tax fall was largely due to a number of exceptional items incurred during the year, including a one-off non-cash write-down of €9m on the sale of its Stone Developments subsidiary.

Management said that as well as overall profitability being achieved in 2013, each of the group’s divisions responded strongly to trading challenges, with the board optimistic about the prospects for the current year and beyond.