Losses halve at Cork-based Kentech group

Pre-tax losses at the Cork headquartered Kentech engineering group last year more than halved to $3.45m. (€2.7m)

The numbers that the group employs last year decreased by 205, from 3,199 to 2,994, and the directors state that they have a record pipeline of business and expect to see a significant increase in revenues this year.

The firm recorded a 1.3% increase in revenues last year, going from $121.7m to $123.3m, that contributed to the 55.7% reduction in pre-tax losses.

The directors that following the “significant loss” of $7.79m reported in 2012, “the performance of the group has improved, but there is still further to go.

“This improvement is due to the successful execution of the strategic review undertaken in 2012 and has led to a more balanced mix of contract structures”.

The directors state that the 2013 loss “has led directly from ongoing issues in legacy unit rate contacts taken on before this strategic review”.

The group provides a range of engineering services in the gas, mining, power and petrochemical industries in the United Arab Emirates, Qatar, Kuwait, Russia, Kazakhstan and Australia.

The loss last year reduced the group’s accumulated profits from $16m to $11.3m.

Staff costs last year decreased by 3% from $66.3m to $64m as numbers employed decreased from 3,199 to 2,994.

Remuneration to the group’s six directors fell from $2.65m to $2.34m.

The group last year recorded a gross profit of €15.9m compared to a gross profit of €10.4m in 2011.

Administrative expenses totalling €17.3m and finance costs of €2.1m resulted in the €3.45m pretax loss.

The group also incurred a foreign exchange loss of €250,922 and tax bill of $1.35m resulted in the total loss of €4.8m for the year.