Readymix has claimed that the slowdown in construction, combined with the sale of part of the business, is the reason behind their downturn in profits.

The cement manufacturing company expects 2007 operating profits to be 65% less than the €19.6m reported in 2006.

The company said the fall-off in building work, loss of earnings from the sale of its concrete business and one-off costs incurred with the introduction of new accounting systems are the factors accountable for the steep drop in profits.

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"During 2007, the company invested €24m in strategic projects that will be important to the future growth of the core businesses. The company ended the year with cash balances of €37m," the statement said.

The company also predicted that current trading conditions are set to continue but believes, however, that profits will recover.

"While it is expected that the very tight trading conditions in the housing and construction sectors will continue throughout 2008, the board believes there are opportunities to improve on the 2007 operating results," it said.

(VB/JM)