The Irish arm of engineering firm Mott McDonald plunged back into the red last year after the firm performed below expectations.
New figures show that pre-tax losses at Mott McDonald Ireland Ltd last year totalled €310,648 after it posted pre-tax profits of €593,327 in 2013.
The firm returned to the red despite recording a 20% increase in revenues to €24.4m.
The directors said: “The results for FY2014 were below expectations.”
The directors state that the return to loss last year “is attributable to escalation in administrative costs, unrecovered costs on projects, which are being pursued, and exchange losses.”
The directors say they “are satisfied with the group’s performance in the year under review”.
The directors state: “Initiatives are in place to reduce costs and position the company to trade more successfully in 2015.
“Also, securing major transportation projects in Ireland and the Middle East in FY2014, along with continued work in flood alleviation, dairy, energy and pharmaceuticals in Ireland, significant additional transportation work in Norway and energy projects in Gibraltar, Oman, Mauritius and UK, have all made a positive impact on trade.”
The directors say that “the forward order book for the next 12 months is relatively good with almost 74% of the FY2015 budget contracted. Business remains challenging but the directors and our parent company are confident that FY2015 should see a significant improvement in our financial performance”.
The figures show that the firm made an operating loss of €146,482 and this followed an operating profit of €738,631 in 2013.
Interest charges of €133,166 and finance expenses of €31,000 reduced the firm’s profits.
The firm has been heavily involved in providing engineering services to the Dart project since its inception and its works on roads includes the N7/N11 Arklow-Rathnew and Newlands Cross project, the N25 Waterford bypass project, Dundalk western bypass, and the N18 Ennis bypass.
Numbers employed by the firm last year increased from 123 to 129.
Staff costs last year increased by 4.5% to €9.78m, including 107 professional staff; 16 administrators and six managers.
Pay to directors, including pension payments, last year totalled €723,111.
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