Partner Article

Pyeroy profits take £1.5m hit

PAINT and coatings giant Pyeroy has reported a 33% dip in annual profits as one of its key markets - the construction sector - continues to be blighted by tough conditions.

The Gateshead firm saw its profits slide from £4.5m to £3m in the year to 31 December 2009, attributing the decline to reduced spending by residential developers during the period.

Sales increased 7% to 58m during the year while its pipeline of orders jumped from £49m at the end of 2008 to £127m the following year.

Major contracts completed during the year included the provision of coatings and repairs to Blackfriars Bridge, London, and work on Victoria Station.

A company statement said: “Customer spending in the company’s primary target markets (rail, marine and power generation) is expected to continue at comparable levels to 2009.

“Customer spending in the commercial and residential property development and construction markets is expected to be static.”

In December the firm’s 50/50 joint arrangement with Cape Industrial Services was awarded a £100m contract to provide coatings and access services to two new aircraft carriers for the Royal Navy.

This was posted in Bdaily's Members' News section by Ruth Mitchell .