Restructuring costs contribute to Tegral losses

Building materials’ maker Tegral plunged further into the red last year to record pre-tax losses of €7.8m.

Documents lodged with the Companies Registration Office by Tegral Building Products Ltd show the firm recorded the pre-tax loss last year after revenues marginally increased from €29.1m to €29.7m.

The contributory factor to the losses was €3.2m on restructuring costs — last year, Tegral announced it was seeking 52 redundancies in response to the collapse in the construction sector.

The numbers employed by the firm totalled 150 at year end. The loss last year followed a pre-tax loss of €229,282 in 2010.

The directors explain that the firm increased revenues “primarily as a result of the acquisition of the business and assets of Tegral Metal Forming Ltd on Dec 31”.

On the company’s future development, the directors state that “management remains firmly concentrated on operational delivery. The company remains well positioned to take advantage of further appropriate prospects and continues to pursue opportunities in Tegral’s traditional rigorous and disciplined manner”.

The figures show that 82% or €24.4m of the company’s revenues last year were in Ireland with the remainder generated in Europe and ‘other’. The firm did not pay any dividend in 2011.

In 2010, the company secured planning permission from An Bord Pleanála to construct a new €75m state-of-the-art production facility on a 38-acre site in Athy.

However, Tegral last year said that the plan is on hold until the market recovers.

One of the factors in the rising losses was an increase in cost of sales going from €24.2m to €27.5m.

The filings confirm Tegral recorded an operating loss of €8.46m compared to an operating profit of €544,109 in 2010.

However, net interest receivable of €624,000 resulted in reduced losses of €7.8m.

The figures take account of depreciation costs of €422,349 and amortisation costs of €134,369.

Emoluments to directors decreased last year from €318,496 to €225,850.

Staff costs increased from €7.8m to €7.9m.

The figures show that the firm recorded an actuarial loss of €11.9m on its pension scheme during the year contributed to a total loss of €19m for the year.

A note attached to theaccounts states that “the company has received a large number of claims in relation to alleged asbestos exposure. The directors have made provisions for the expected cost of defending these claims and where appropriate, discharging any liability arising from these claims.”

The company had set aside €6.7m for health claim liabilities at the start of the year with a total of €1m utilised during the year.


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