Readymix sees uncertainty after profit fall

Building materials company Readymix said today that 2003 is expected to remain uncertain after it reported a drop of 16 per cent…

Building materials company Readymix said today that 2003 is expected to remain uncertain after it reported a drop of 16 per cent in pretax profit for 2002.

Profit before tax at €21.6 million reflected the downturn in the Irish market.

But results from Northern Ireland were up on the previous year, and the company's business in the Isle of Man had another satisfactory year, Readymix said.

If further evidence of a moderation in the levels of activity in construction were needed, they were clearly evident in 2002, said the board.

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This was true of both the Republic and Northern Ireland where certain sectors, particularly in the commercial and retail areas, experienced a significant downturn in 2002, it said.

The company said: "The future remains unclear with uncertainty in both the domestic and international markets likely to remain a feature throughout 2003".

The board said forecasts indicate a further softening of the market in the Republic, with more steady demand in other areas.

Turnover, margins and profits all suffered in the Republic in 2002, arising from the reduced levels of activity as well as higher costs and a more competitive climate.

Group turnover for 2002 was €212 million, down 4 pct on the previous year.Earnings per share fell from 19.55 cents in 2001 to 16.14 cents in 2002.

Net borrowing reduced from €38.3 million in 2001 to €28.8 million in 2002. This represented a reduction in gearing between 2001 and 2002 from 34 per cent to 24 per cent.