Mercury posts a pre-tax profit of €19.2m

Mercury Holdings, the successful engineering and investment group which includes Mercury Engineering Ltd, made a pre-tax profit of €19.2 million on turnover of €214.6 million, according to its latest accounts.

Mercury has been associated with major projects such as the construction of Tallaght Hospital and the Fab 24 plant currently being built at Intel Ireland's operation in Leixlip, Co Kildare.

The accounts for the year to December 31st, 2001, which have just become available, show that the group sold its property investment business to a related company, Gladtoknowyou Ltd, for €16.17 million.

The consideration was paid by the allotment of shares in Gladtoknowyou to the shareholders of Mercury. Mercury then made a distribution equivalent to the consideration paid for the property.

The principal shareholders in Mercury are Mr Frank O'Kane and Mr Joe Morgan. It has its registered offices at Mercury House, Sandyford Industrial Estate, Dublin.

The group profit and loss account at the year-end was €50.9 million. The accounts describe Mercury as being involved in the "design, manufacture and installation of mechanical, electrical and fire protection systems to all facets of industry in Ireland".

Group turnover for 2001 was up on 2000, when turnover was €152.9 million. Profit before tax was €15 million. The accounts show that at end-December 2001 the group had cash reserves of €44.7 million. The breakdown of turnover by location shows the bulk of its business occurring in the Republic and the EU, with €9.5 million occurring in non-EU Europe and €1.6 million in the rest of the world.

The group's property investment business was transferred to Gladtoknowyou Ltd in November 2001. The transaction was treated in the Mercury books as a disposal of assets and distribution of proceeds as its shareholders were paid a sum equal to the consideration paid for the property.

The Mercury accounts noted that the number of people employed on contract during 2001 was 1,144 while the number of persons employed in administration was 55. The figures were reasonably similar in 2000. Wages and salaries in 2001 came to €56.6 million.

The group had transactions totalling €20 million with related companies controlled by Mercury directors Mr Morgan, Mr O'Kane and Mr Gerard Morrisey. The related companies were Reville Ltd; Santer Ltd; and Irish International Construction Corporation Ltd.

The Mercury group companies include Mercury Engineering; Mercury Offshore Services Ltd; Mercury Technologies; Mercury Explosion Protection Ltd; Malpensa Enterprises Ltd; and Mercury Engineering Polska SP.

The accounts of Gladtoknowyou Ltd show total borrowing of €10.7 million with the borrowings, from the EBS, secured on a number of properties. The properties listed are 11-13 Suffolk Street, Dublin 2; units at the Square, Tallaght; office premises at Ballinalee Road, Longford; and 4-5 Dawson Street, Dublin 2.