Readymix reviews cost base after 49.3% profits fall
Building materials group Readymix has announced "disappointing" results for 2004. Before-tax profits were down 49.3% to €11.4m from €22.5m the previous year.
The board has recommended a final dividend of 5.40c per share.
The profits fall came despite a growth of 9% in the construction industry in the Republic to an estimated €28bn during 2004. The company said this was due to intense competition in the industry.
In the North, demand grew in the year, but Readymix profits were down there too. Activity on the Isle of Man was reduced as a result of lower levels of infrastructural spending on the island.
"As indicated in the trading statement issued in December, despite strong demand and increased volumes, the financial results for 2004 are disappointing. The results reflect the intense competition experienced in a number of our key markets," the company said today.
"While we have been successful in maintaining market position, in this competitive environment it was not possible to fully recover increases in materials, transport and labour costs."
Since year end, Readymix has embarked on a fundamental review of its entire cost base and will be looking to improve both cost controls and operating efficiencies following the recently completed reorganisation of the business on an all-Ireland basis.
The emphasis of this fundamental review is to restore the sustainable financial performance of the company in the shortest possible timescale, Readymix said in a statement to the ISEQ.
