Pierse directors get €1.5m dividend payment

One of the country's biggest building firms paid nearly €1.5 million in dividends to shareholder directors in the 12 months ended on April 30th.

Accounts for Birmayne Ltd, the ultimate parent of Pierse Construction, show that it paid dividends to equity holders of €2.30 per ordinary share in the 12 months ended on April 30th, its financial year.

On this basis, founder and non-executive chairman Ged Pierse, who held 389,161 ordinary shares at the end of the year, was entitled to €895,070, while chief executive Norbert O'Reilly, who held 121,389 units, was entitled to €279,194.

The total payout to four director-shareholders came to €1.478 million. The other beneficiaries were Fearghal O'Nolan, the group's financial director, and director Michael Flick.

The accounts note that the company paid a total of €2.5 million in dividends during the year. Other shareholders include James Kavanagh and Martin Murphy, and a holding company, Remayne Holdings, in which Mr O'Reilly, Mr Pierse, Mr O'Nolan and Mr Flick all hold a stake. It has one-third of Birmayne, which would have entitled it to a dividend of more than €800,000.

The accounts show that rising costs hit profits at the building and civil engineering group during the year.

Total turnover was up €105.8 million at €474.76 million. Group turnover, less a €17.26 million contribution from a joint venture, was €457.5 million, up from €364.2 million last year.

Notes to the accounts show that building contracts were the main source of turnover, accounting for €329.3 million of the total, up from €260 million in 2005.

Civil engineering contracts were the next biggest contributor at €74.9 million. This element of the business was up 75 per cent on last year, when it accounted for €46 million.

That result ensured that it outperformed property development, which accounted for €50.4 million this year, as opposed to €55 million in 2005. Rental income and other activities made up the rest of the turnover.

However, the cost of sales increased markedly to €428.76 million. Operating profit came to €8.8 million, down from €12.2 million. A €2 million share of joint-venture profits left the company with pretax profits of €10.8 million, compared with €12.4 million last year.

Pierse Construction is one of the best-known names in the Irish building industry. It is involved in the €56 million Heuston Square development, close to one of Dublin's main train stations.

Pierse employed 763 people at the end of April.