Belfast Telegraph

Ballyvesey Holdings

By John Simpson

Ballyvesey Holdings' annual accounts are the combination of the results for the parent company and a number of wholly- owned subsidiaries including Montgomery Transport, Montracon, JE Coulter and a Polish subsidiary.

This combination makes the group the largest in its sector with operations based in Northern Ireland.

The group's performance reflects a more difficult trading environment where increased competition has meant trading margins have been squeezed.

The gross margin on turnover fell from 11% in 2004 to 10% in 2005 and then to 9.7% in 2006.

The impact has been a sharp fall in operating and pre-tax profits and a trading loss in 2006.

As with many transport businesses, the group carries significant borrowing against vehicle assets with leasing and bank borrowing of over £48m. This is reflected in interest charges that rose to £2.7m in 2006.

The balance sheet reflects the changing trading position and the impact of FRS 17, where a net liability of £1.2m was estimated.

In addition the balance sheet has been strengthened by the revaluation of the group's fixed assets. This has added just over £35m to the published value of tangible assets, raising the total to nearly £113m.

Employment fell to average 1,704 people, a fall of 11%.

Belfast Telegraph

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