Civil engineering and building group Pierse has more than €700 million worth of public and private projects under way, according to the latest figures. Returns filed with the Companies' Registration Office (CRO) show that at the end of its financial year on April 30th last, the group had €470 million worth of work on its books. Barry O'Halloranreports.
Since the year end, it has secured a further €290 million, bringing the total under way to €760 million.
Chief executive Norbert O'Reilly confirmed the figure yesterday, and explained that, along with a number of other players in its industry, Pierse has shifted its focus to infrastructure projects in anticipation of planned Government spending under the National Development Plan.
"As a business, we are doing well because we are spread across a number of areas in the industry," Mr O'Reilly said. However, he stressed that it was important that the Government fulfilled its spending commitments under the plan.
The public projects on which it is working include an extension to Cork University Hospital and the new Department of the Environment headquarters in Wexford.
Accounts just lodged for Birmayne Ltd, the group's parent, show that turnover was flat at €474.7 million in the 12 months to April 30th.
Turnover in a number of joint ventures in which the group is involved dropped to €10.8 million from €17.2 million, while operating profits from these projects also fell to €716,000 from €2 million.
This left total group operating profit at €1.7 million for the financial year, compared with €8.8 million in 2006. Profit before tax came in at €1.5 million at the year's end, down from €10.9 million 12 months earlier.
Mr O'Reilly said earnings and profits from building and civil engineering contracts vary from year to year, as the timing of payments for the work also varied.
The money can only be booked as turnover and profit in the year that it is received.
The joint ventures in which it is involved include Carton House Hotel in Kildare, a 300-home residential development at Carrickmines Manor and an apartment project in Dublin's docklands.
The group's balance sheet strengthened during the year, with shareholders' funds increasing to €62.1 million on April 30th from €59.9 million a year earlier.
Shareholders were not paid a dividend for 2007, although they received €2.5 million in 2006.
Mr O'Reilly, a former president of the Construction Industry Federation (CIF), said he supported the body's call for the Minister for Finance, Brian Cowen, to reform stamp duty in next month's budget.
"This is not just an industry issue, it's a national issue," he argued. "Irish transaction taxes are far higher than in Europe. Around €9 billion from this country will be invested in developments elsewhere this year, and we need to balance that up."
Mr O'Reilly added that housing had slowed dramatically, and said that many of the new home sales this year dated back to contracts signed in 2006.
Pierse Contracting was ranked the third-biggest building and civil engineering group in the country by the CIF's official magazine, Construction. Its biggest shareholder is Ged Pierse.
