Tough competition and issues on a number of projects have resulted in foundation contracting and equipment business Bauer recording a loss of €19.4M (£16M) for 2013, despite a 4.9% rise in revenues for the period.
“The past year saw a number of individual issues which together produced an unsatisfactory overall result,” said Bauer chairman of the management board Thomas Bauer.
Bauer stressed that the result for last year does not mean that the company’s business is in trouble and he said that the operation is “capable of generating income on a sustained basis”. Bauer pointed to the increase in revenues to €1.5bn (£1.24bn) last year and the current high level of orders in hand as evidence of the company’s strength.
Poor weather conditions in the firth three months of 2013, weakness in some markets and delays on major projects impacted on the company’s earnings, according to a press statement. Lower than expected demand for new equipment and strong competition were also blamed for the poor performance.
Bauer reported that a cost saving exercise has helped save the business €20M (£16.5M) so far but no dividends will be paid to shareholders in order to maximise funds available to the business. “After a year such as 2013, it is urgently necessary that funds should be retained within the business,” said Bauer.
Bauer said that he expects 2014 to see the company return to profitability with full year revenues forecast to be around €1.55bn (£1.28bn) and profit after tax to be between €20M and €25M (£16.5M to £20.6M). He added that the business has traditionally made a loss in the first quarter which is balanced out over the subsequent quarters.