Annual profits double at Coffey Construction

Pre-tax profits almost doubled at the the main firm of Galway-based construction business Coffey Construction last year to €6m.

The 77% rise in pre-tax profit for Coffey Construction Ltd came as revenues at the company rose 5.5% from €34m to €35.9m in the 12 months to the end of December. The directors say they are satisfied with the results, which have seen the group continue to be profitable.

“Market conditions continue to be challenging due to the economic climate and highly competitive tender market in which the company operates, although, there are signs of improvement in both areas, particularly in the UK market,” they said.

The directors went on to say a key contributor to the group’s turnover and profits are contracts for the operation and maintenance of third-party assets which have more than 10 years to run.

Numbers directly employed by the firm fell from 224 to 155 with the numbers engaged in construction and specialist technical labour at 128 with 27 employed in management and administration.

The directors report added: “As a contractor working primarily on publicly funded projects, the extent of opportunities available to the group are significantly influenced by the Government’s capital expenditure budget.”

A breakdown of the firm’s revenues show €13.5m was generated from water and waste water treatment with €8.9m generated from civil, building, and environmental engineering.