Pre-tax profits at Denis O’Brien’s Siteserv soar 80% to €14m

Pre-tax profits at the Denis O’Brien-owned Siteserv last year almost doubled to €14.24m, new accounts show.
Pre-tax profits at Denis O’Brien’s Siteserv soar 80% to €14m

The group, recently rebranded as Actavo, achieved the 80% increase in pre-tax profits after revenues soared by 36%, going from €239m to €323.6m in the 12 months to the end of December last.

The directors of the group state that revenues in 2015 will hit €400m, a 67% increase on 2013, while the number of Siteserv employees grew to 3,367 over 50 locations.

Last year was the group’s strongest performance since Mr O’Brien’s Millington purchased Siteserv for €45.4m in March 2012 and the now-controversial deal saw the State-owned IBRC write off €110m of its €150m debt.

Earlier this year, it emerged that Government officials expressed concern about the deal at the time and shortly afterwards.

It is now one of a number of deals completed by the IBRC that is subject to a Government-appointed commission of investigation.

The commission of investigation has run into severe difficulties because of its inability to use documents from the stock exchange, the Central Bank, the Dept of Finance as well as liquidators of the IBRC.

A Siteserv subsidiary, GMC/Sierra is one of three companies that was awarded contracts for the installation of water meters by Irish Water.

Siteserv’s Irish revenues last year increased to €80.67m.

The directors’ report states that 63% of revenues was derived from sales outside Ireland, with the group recording revenues of €202.9m overseas last year.

The accounts have only recently been lodged with the Companies Office, but were signed off on March 27 of this year, which was before the political controversy erupted over the sale of the firm and, as a result, no reference is made to the controversy.

The directors state that Siteserv is pursuing a policy of geographical and sectoral diversification and, during 2014, resources were deployed on winning business in the UK and the Caribbean.

The directors state that Siteserv has won significant new contracts with Digicel, BSkyB, Phillips 66, Electric Ireland, ESB, Glastonbury, the Commonwealth Games, Giro D’Italia, and Cork University Hospital.

The directors state that part of the long-term growth strategy of the business is to position itself as the infrastructural services company for the Denis O’Brien-owned Digital, with a number of Siteserv operations based in the Caribbean, including Jamaica, Trinidad and Tobago, British Virgin Islands, Barbados and Dominica.

The directors state that the group “made a strong start to trading in 2015 and the board is confident that it will represent another year of successful development for the business”.

The accounts show that the group recorded an operating profit last year of €16.69m, while interest payments of €2.45m reduced the firm’s profits to €14.24m.

The firm paid corporation tax of €1.2 resulting in post tax profits of €13m.

At the end of December last, the group had shareholder funds of €38.83m that included accumulated profits of €25.4m.

The group’s cash pile during the year increased from €10.6m to €11.25m.

The profit last year takes account of non-cash depreciation costs of €6.6m.

The Siteserv business is led by CEO Sean Corkery, while Mr O’Brien, and chairman of Independent News and Media (INM) Lesley Buckley, also sit on the board.

The aggregate remuneration to the seven directors who served last year, totalled €1.5m.

Numbers employed by Siteserv last year increased by 26 to 2,500, with staff costs increasing to €130.47m.

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