RESULTS: Barlo will not pay a final dividend after difficult trading conditions in its continental European markets pushed the company into the red after tax.
The radiators and plastics group reported an operating profit before goodwill of €15.4 million for the year to March 31st, down from €25.7 million a year earlier.
After tax, the company reported a loss of €10.6 million compared to €19.6 million profit the previous year.
Turnover rose by 8 per cent to €295.9 million but this reflected a first full-year contribution from Athlone Extrusions and Barlo Plastics Slovakia.
If these acquisitions are stripped out, sales volumes in both the plastics and radiators businesses were down on the previous year.
The company said its performance was affected by a downturn in mainland European markets, which account for close to 60 per cent of turnover.
"Market conditions in Germany, a major market for the group, have been very difficult and this in turn has had a knock-on impact on neighbouring economies," chief executive Mr Tony Mullins said.
The impact of restructuring, integration and capital projects completed during the year also had an effect. The group had an exceptional charge of €12.7 million relating to its plastics restructuring programme, but hopes to recover these costs over three years.
Barlo, which issued a number of profit warnings over the course of the year, said trading conditions remained difficult. The company expects to improve its operating performance in the current financial year as the benefits of the restructuring programme are realised.
"Some improvement in trading conditions was experienced in the final quarter of the year and this had continued into the first quarter of the current financial year," Mr Mullins said.
"Nevertheless, the current outlook is that trading conditions, particularly in continental Europe, will remain uncertain and difficult."
Barlo, which passed on its interim dividend, said it would focus on reducing group debt instead of paying a final dividend.
At the end of March, the company's debts stood at €140.7 million, up from €127 million.
