Profits were almost halved last year at Cork-based developer, Bowen Construction, even though turnover rose by 22 per cent.

Accounts recently filed at the Companies Office show that the firm posted pre-tax profits of €1.9 million for the year ending March 31st, 2004, down from €3.6 million in the previous year.

The drop came as turnover increased by 22 per cent to €123.8 million over the same period.

The biggest driver behind the decline in profit was a higher cost base, with Bowen's costs rising from €92.1 million to €115.5 million over the year.

The firm recorded higher costs across a number of areas, with its outlay on subcontractors marking one of the largest jumps, from €65.5 million to €84.7 million. Bowen also made a provision of €560,000 against debts owed by a UK sister company, Ring-Gard, which went into administration during the year.

Bowen Construction is a wholly-owned subsidiary of Bowen Holdings, which is 70 per cent owned by Cork businessman Mr John Bowen. The company is involved in building and civil engineering contract work.