Readymix profits jump 48% to almost €20m

Profits from core activities at building materials player, Readymix, grew by close to 50 per cent in 2006 to €19.6 million.

The company reported yesterday that operating profits, before once-off gains, increased by 48.2 per cent in 2006 to €19.6 million last year from €13.2 million in 2005. Operating profits at the company had fallen by over 4 per cent in 2005, despite the fact that the building boom was reaching a peak.

Profits before tax last year were boosted by the sale of €29.3 million worth of property. They came in at €42.6 million, a 32 per cent increase on the €32.25 million recorded in 2005.

Mexican giant Cemex holds a majority stake in the company, which was restructured in 2005.

The company said yesterday that performance improvement initiatives and a good economic conditions boosted its profits last year.

Turnover slipped slightly to €245.4 million from €248.1 million, but chairman Adrian Auer said this was the result of it ending its road surfacing business in the final quarter of 2005. This move was part of that year's shake-up.

Earnings per share in 2006 were 33.89 cent, a 49 per cent increase on the previous year. The board is proposing to pay a final dividend for the year of 7.76 cent, an increase of 10 per cent.

Operations generated cash flow of €40.4 million, a 33 per cent increase on the 2005 figure of €30.3 million.

Combined with the return from property sales, the improved cash flow helped to eliminate the company's debts. Mr Auer said this would provide Readymix with the cash it needs to grow organically and through acquisition.

Readymix invested €16 million in the business last year, twice the amount it spent in 2005.

Commenting on the results, Mr Auer said that the 48 per cent increase in operating profit was significant.