This article is from page 15 of the 2009-11-03 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 15 JPG
LOSSES at the company that con- structed the €198 million Ennis by- pass last year exceeded €10 million last year.
Accounts filed with the Companies’ Office show that the losses at GAMA Construction Ireland resulted in the company having accumulated losses of €69.6 million at the end of last year.
Work on outstanding issues 1s on- going and Clare County Council recently confirmed that it paid €2.6 million to GAMA Construction this year.
Last year, GAMA admitted to the Labour Court that it had projected a loss on €45 million on the Ennis bypass project alone after underesti- mating the cost of labour and materi- als and incurring financial penalties for delays.
The company’s work in Ireland came under scrutiny in 2005 over allegations that it underpaid migrant workers.
The accounts for 2008 show that the company’s turnover slumped by 67 per cent from €39 million in 2007 to €12 million last year.
The directors state that the group had negative net assets at the end of the financial year.
The accounts point out that GAMA
is reliant on the continued financial support from its ultimate parent un- dertaking, GAMA Holdings.
“The company’s ultimate parent has agreed to support the group over the next 12 months from the date of signing of the financial statements.”
The directors confirm that they are actively tendering for a number of projects and conclude that they have “a reasonable expectation that the group has adequate resources to
continue operating for the foresee- able future having regard to trading prospects and finance available.”
Last year, the company employed 58 compared to 183 in 2007 with the company’s wage bill falling from €14m to €3.6m.
The accounts also show €750,943 in an exceptional item from the sale of an asset.
GAMA Construction Ltd is based in Santry, County Dublin.