CONSTRUCTION: The sharp slowdown in the construction industry in the Republic last year has been reflected in full-year results from Readymix, with turnover down 4 per cent to €222 million.

A strong focus on reducing costs, however, allowed Readymix to report a marginal increase in profits to €25.7 million.

But the company had a steady performance in its Northern Ireland and Isle of Man operations.

The slowdown in the Republic was most pronounced in the residential and office markets. The residential market is the most important sector for Readymix in the Republic and, while housing completions in 2001 were at an all-time high, housing starts were down by up to 20 per cent. Housing in Cork, Limerick and Galway was worst hit with starts down by as much as 40 per cent.

Office development in early 2001 remained strong but new work in the sector did not come on stream to replace projects nearing completion. Readymix chief executive Mr John McNerney warned that, until surplus office space in the Dublin area is let, new office construction will remain subdued.

Readymix also suffered from high energy and bitumen prices, while employee cost increases continued to rise above the level of inflation.

A 5 per cent rise in cement prices was passed on to the market, while Readymix itself applied an average 5 per cent increase in November 2000 that largely held through 2001.

On future trading, Mr McNerney said that, despite the slowdown in the Republic, construction levels remained strong.

"While levels may show some declines in the first half of 2002, the outlook for the remainder of the year is more positive," he said, adding that there are indications of a recovery in residential construction in the third quarter.