Scariff-based firm quadruples profits

Clare firm Finsa Forest Products more than quadrupled its profits last year, but is facing substantial costs to meet new environmental requirements at its plant.

Accounts just filed at the Companies Office show the Spanish-owned, Scariff-based firm recorded a profit of €601,000 last year, up from a €141,000 profit in 2005. The accounts show that the company's turnover increased from €35.8 million in 2005 to €39.6 million last year, with the growth attributed to increased prices.

The cost of sales also increased from €31 million to €34 million, while the company's retained profit now stands at €4.1 million.

The principal activity of the company is the sale of timber and a geographical breakdown shows sales of €27 million in Ireland and €12 million in the EU last year.

The accounts show that 156 people are employed at the firm, with the bill for wages last year amounting to €5.9 million.

Finsa highlighted tight margins in a statement accompanying the accounts. "Margins available continue to be very tight due to supply constraints and rising fuel and electricity costs.

"In an effort to bring margins to a more acceptable level the company is continuously endeavouring to improve its operating efficiency and continues to concentrate its efforts on improving cost control at all levels of the operation."

Last year, it succeeded in having strict new environmental controls eased, thus securing jobs. The company states that it is meeting its environmental obligations by removing an old chimney that needs to be replaced with a new chimney fitted with suitable filters to limit emissions to levels specified in its operating licence.