Construction slowdown hits Readymix

Building materials group Readymix has reported a pre-tax loss of €6.9m and an operating loss before non-recurring items of €7.1m for the first six months of 2009.

Company revenue is down 45% on H1 2008, falling from €75.2m to €41.6m, Readymix said in an interim statement published today. The company has decided to withhold payment of an interim dividend.

The company blamed challenging trading conditions and the "exceptional weakness of the housing and commercial construction sectors" for a contraction in demand for its products.

It admitted that cost reduction initiatives including a 10% reduction in staff since the end of 2008 "have not been able to offset the serious reduction in revenues".

"Readymix plc expects very demanding trading conditions for the remainder of 2009 and continuing into 2010, as a result of the weakness in the housing and commercial sectors and the delayed start of new infrastructure projects," the company said.

"Against this background, the priorities for management are continued cost reductions and focusing on projects to deliver efficiency savings."