Cork-based international engineering group Kentech pares back losses for 2014

Cork-based international engineering group Kentech sharply pared its losses to $2m (€1.88m) last year.

Accounts for Josar Holdings Ltd show the group reduced its pre-tax losses by 42% as revenues jumped 23% to $151.4m.

The group operates in Australia, Kazakhstan, Kuwait, Mexico, Qatar, Russia and the UAE.

It received fresh funding of $32m from a London-based investor in June.

It paid back loans to Danske Bank in full and settled with overdue creditors.

The directors say the funds will be used to support investment in equipment and “the broadening of service lines”.

The accounts show it had a loss of $12.9m on a contract in Abu Dhabi in 2014, but that a final settlement agreement has now been reached.

A loss of $.9m was made on a Kuwait project, though the claim associated with the project has not led to a final conclusion.

Numbers employed by the group last year reduced from 2,994 to 2,705 and staff costs last year rose from $64.1m to $92.55m.

There was “a significant improvement in the underlying performance of the group during 2014.

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 say.

Pay to directors listed as Sarah Kent, John Kent, John Gilley and Matthew Seale remained at $1.8m.

“The group does expect some major projects in the oil and gas sector to be delayed due to the fall in the oil price in 2014 although the impact in 2015 will be minimal,” the report says.