Tegral building products firm back in the black but awaits recovery
Paddy Kelly was speaking as newly available accounts showed Tegral Building Products returned to profit in 2014 with a pre-tax surplus of €2.78m.
The firm had recorded a pre-tax loss of €2.25m in 2013.
Revenues, for 2014, jumped 36% to €37.14m.
However, Mr Kelly said business was “flat” in 2015 compared to 2014 and the “slight” pick-up in trading has only really been seen on the east coast and is yet to spread nationwide.
“We are really waiting for a recovery in the regions so we can improve our performance in Ireland,” he said.
“We warned the Government about this a year ago when we opened our roofing academy that we needed to do something in the regions — and nobody listened, unfortunately.” he added.
The principal activity of the company continues to be the manufacture and sale of roofing, cladding products, profiled metal sheeting and purlins.
The increase in 2014 revenues was largely driven by landing a contract with its sister firm in the UK.
“Sixty per cent of what we are manufacturing is now going into the UK after securing that contract,” according to Mr Kelly.
In 2010, the company secured planning permission from An Bord Pleanála to construct a new €75m state-of-the-art production facility on a 38-acre site outside Athy.
However, the project has been shelved for the long term, with Mr Kelly explaining “we were looking to move off our existing site in the middle of the town and moving two or three miles outside of Athy but it is shelved as we just wouldn’t get the money for the investment.”
On the prospects for 2016, Mr Kelly said things are looking okay but the home market is difficult.
“It will be flat or maybe a 5% rise in revenues.”
He added that the firm opened up a roofing academy that trained 500 people in 2015, saying “this helps to increase our product mix.”
A breakdown of the company’s sales show that Irish revenues in 2014 increased by €2.8m to €21.8m while European revenues almost doubled to €15.3m.
The boost in business, at the time, resulted in the Kildare firm increasing its workforce from 102 to 127 staff, with employees now numbering 140.
A breakdown of the numbers employed show that 78 are in production and maintenance and 49 work in administration, sales and distribution.
The firm’s 2014 wage bill increased 26% to €7.19m, while directors’ pay jumped from €254,202 to €307,502.
A note attached to the accounts states the company has received a large number of claims in relation to health and safety issues.
It adds: “The directors have made provisions, where appropriate, for discharging any liability arising from these claims.”
The accounts show the firm recorded an actuarial loss on its pension scheme of €3.4m in 2014 compared to an actuarial gain of €3.83m in 2013.
At the end of December 2014, the company had accumulated losses of €21.5m.
However, called up share capital of €16.6m and a revaluation reserve of €1m contributed to a shareholders’ deficit of €1m.
The firm’s selling and distribution costs last year totalled €2.6m with administrative expenses of €202,558 and other operating expenses of €746,485.
The profit in 2014 takes account of non-cash depreciation or €608,715.
