Ireland's third-largest construction group, Birmayne, made a pre-tax profit of almost €10 million last year despite falling sales.
Birmayne, the holding company for the Pierse group of companies, saw profits rise almost 29 per cent on the previous year to €9.85 million as it began to move into property development through a series of joint ventures. Previously, the group focused on building, contracting and civil engineering.
The results were achieved despite adverse currency movements which cost the company €507,000. Turnover was down slightly to €286 million from €305 million a year earlier. The group consolidates results for its subsidiary operations.
Building contracts continue to account for the lion's share of group business, contributing three-quarters of total turnover. The group's move into house sales saw a first-time contribution of €4.7 million in sales.
Geographically, the group's business remains concentrated in Ireland, with British operations accounting for about 10 per cent of the total.
Trade publication Construction Industry Magazine last year put the group third among Irish construction firms by turnover, behind John Sisk & Son and Ascon Rohcon.
Birmayne companies are currently among the bidders for the €100 million next stage of Dublin's Digital Hub. They are also pitching for a similar-sized contract to redevelop the Carlisle Pier at Dún Laoghaire, although its plans for the derelict baths at the other end of the Dún Laoghaire promenade were thrown out last summer.
Six directors hold shares in the group, which is controlled by Mr Ged Pierse, who holds 54.5 per cent of the stock. Between them, they shared dividends of €400,000 at the end of the financial year with the balance of profits retained in the group.
During the year to end March last, Birmayne acquired the outstanding 50 per cent of Pierse Development (Cork) Ltd for €1.2 million. Since year-end, the group has bought British firm Bisley Construction for an undisclosed sum.
The Birmayne group made just one political donation during the year, contributing €5,000 to Fianna Fáil. Interest-free loans to directors fell to €47,000 in the 2003 fiscal year from €92,000 in 2002, primarily as a result of chairman Mr Pierse paying back all but €1,000 of a €66,000 loan. But Mr Brendan Sheridan, a director of several subsidiary companies, doubled his borrowings from the group to €40,000.
During the year, staff numbers were cut by 10 per cent to 734.
