Heiton Group, the Irish buildings material company that owns the Atlantic Homecare chain, has announced a radical restructuring of British operations after reporting a pre-tax profits slide to €9.1 million from €15.5 million for the year to the end of April.
Operating profits climbed 13.8 per cent to 27.3 million but asset writedowns at British holdings incurred a €13 million charge - including an €8.6 million goodwill write-off on acquisitions.
Turnover climbed 13.4 per cent to €479.1 million.
Earnings per share before exceptionals rose 20 per cent to 43.1 cent and a final dividend of 8.2 cent was announced at the company's annual general meeting yesterday.
Reorganisation in the UK is expected to put operations there on a stronger footing, said chief executive Mr Leo Martin.
Central to the overhaul will be the integration of subsidiaries Cooper Clarke and Willis Builders Merchants into a single company focusing on the market for drainage products.
The move follows a disappointing performance by Cooper Clarke. Heiton plans to exit some smaller UK businesses.
Group operations are to be reorganised into three divisions: Heiton Trade, which includes Irish builders merchants operations; Heiton Retail, including Atlantic Homecare; and Heiton UK.
Heiton said the domestic construction market had performed satisfactorily in the second half of the year, prompting 3 per cent turnover growth at Atlantic Homecare after a disappointing start.
Mr Martin said: "A strong trading performance has been achieved across our Irish operations, reflecting successful organic and acquisition development, particularly in our Heiton Trade business. Earnings are well ahead and cash generation has been very strong."
He added: "Trading in the UK remains challenging. However, following a strategic review and implementation of a restructuring programme, we are well placed to take advantage of growth opportunities in the drainage segment of the civils market.
"Further, the restructuring is anticipated to be cash positive for the UK business."
There will be around 30 job losses in Britain if companies earmarked for disposal cannot be sold.
