CONSTRUCTION group John Sisk & Son Ltd has announced profits of more than €13.3 million for 2009, down from profits of nearly €22m the previous year, but still a creditable performance given the broader economic challenges facing the Irish building sector.
The Dublin-headquartered group, which has operations throughout the country, paid shareholders an interim dividend of €49.40 per €1.25 ordinary share, totalling almost €19.8m in 2009.
The directors have not proposed a final dividend for the end of 2009. The total dividend in 2008 was around €90m.
This dividend and the solid profits came in a year in which group turnover fell by more than €300m, from €983m to €676m. Taking into account Sisk’s shares in joint ventures, total sales fell by around €351m year on year.
In the Sisk & Son Ltd group report for 2009, company director Brian P Keogh explained: “2009 was a satisfactory year for the John Sisk & Son Ltd businesses, given the very difficult conditions which the Irish construction industry faced during the year, and will continue to face in 2010. Turnover (including the share of joint ventures) fell by €351m from 2008.
“The results for the year include a number of exceptional charges, including the write-down against the carrying value of joint venture companies, an increase in the provision for bad debts, and restructuring costs during the year. We expect that trading conditions will remain challenging for the duration of 2010.”
The group’s €676m in sales for 2009 were achieved in conjunction with Sispar Construction Ltd, a joint venture in which John Sisk & Son Ltd has a 50% share.
John Sisk & Son Ltd is wholly owned within the Sicon Limited Group. Transactions with Sicon Ltd and with its other wholly owned subsidiary companies were not disclosed in the newly-issued accounts, an exemption permitted under the Companies Act.
The group’s investments in new properties, plants and machinery were all relatively conservative.
The group also wrote down more than €13m in loans to joint ventures in 2009, which included a €2m advance to joint partner Sispar Ltd. In total, during the year, the group wrote off €4.6m in loans due from Sispar Ltd.
Also during 2009, the company wrote off loans of more than €9m to joint venture partner Parsis Ltd.
The accounts also cited a number of loans due from joint venture partners, all of considerably smaller amounts, which were not written off. Other joint venture partners listed in Sisk’s latest accounts include SDD Shanganagh (water treatment) Ltd, Hanover Quay Partnership, Sitreas Construction Management Ltd and DirectRoute Construction Ltd, among others.
Senior directors at John Sisk & Son Ltd include: Liam Nagle, chairman; Tom Costello, managing director; Barry Patterson, company secretary; plus directors James J Doyle, Paul Hackett, Joe McLoughlin, Brian P Keogh and Frank Quirk.
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