PROFITS IN Bowen Construction’s operations grew 9 per cent last year to €4.9 million, according to its latest figures.
The company, which built the Cork Airport Business Park and is working on the Luas extension to Cherrywood in Dublin, says turnover last year was down over 30 per cent on 2008 at €140 million.
Bowen’s costs fell roughly in line with its turnover, leaving it with €4.9 million in operating profits in 2009, ahead of the €4.4 million it recorded the previous year.
In 2008, other group companies forgave Bowen Construction debts totalling €3.2 million. This was recorded as a once-off item in its accounts, which boosted its pre-tax profits for that year to €6.9 million.
Pre-tax profits in 2009 were down at €4.3 million. The company ended the year with a €3.8 million surplus, half the €7.6 million recorded under the same heading in 2008.
The accounts value work in progress, which it is largely doing under contracts with its State and private sector clients, at €30.9 million. This is its net realise-able value. Bowen’s accounts warn there are difficulties valuing property in the current climate.
They also state that one client with which the company had contracts worth €8.5 million on December 31st has run into financial difficulty.
Bowen Construction owes €13 million to its banks and €23 million to other companies within the Bowen Group. The accounts show that other group entities owe it €63 million.
Bowen Holdings is the parent of the group and the company. John Bowen controls 70 per cent of the holding company. The construction company focuses on contracting in the Irish market.
