BUILDING MATERIALS group Readymix warned yesterday that it would continue to lose money this year after reporting a €47 million deficit for 2008.

The Dublin-listed company yesterday said that revenues dropped almost 22 per cent to €133 million in 2008, from €170 million the previous year.

Its operations lost €46.6 million last year against a €9.7 million profit in 2007. The group lost €47.3 million before tax in 2008, against a €9.65 million gain the previous year.

In a statement it said trading conditions would remain tough in 2009, which would mean that operating losses would continue “albeit at a substantially reduced rate”.

The company pointed out yesterday that the building industry shrank by 20 per cent in 2008.

Chairman Adrian Auer said 2008 proved to be another very difficult year.

“The weakness in the housing and commercial construction markets was both dramatic and sustained, and resulted in sharply reduced demand for all of the group’s products.”

The statement said that the company maintained its market positions and prices, and blamed the 22 per cent fall in turnover on a fall in sales.

“An increase in costs, largely driven by high fuel prices, together with flat selling prices, further eroded out operating margins,” it said.

“These factors, together with one-off costs related to redundancy, one-off charges related to the carrying value of all assets, and site closure costs resulted in reported pretax losses of €47 million for the financial year.”

The group announced a cost-cutting programme in December which it hopes will save it €15 million a year.

This included a 25 per cent pay cut for non-executive directors and a 10 per cent salary reduction for management.

The group has a strong balance sheet, which is virtually debt-free, and ended 2008 with €113 million in shareholders’ funds.

Mexican giant Cemex controls Readymix.

Readymix FY Results

Revenue:€133 million

(-21.7%)

Pretax loss:€47.3 m

Loss per share:35.87c

Dividend:1.65 cent (-78%)