Profits double at business technology provider MJ Flood

Pre-tax profits at business technology provider, MJ Flood last year more than doubled to €7.3m, newly filed accounts show.

Revenues at the firm jumped by 60%, to €82.75m, although the revenues of €51m recorded in the prior year was for an eight-and-half-month period.

In the accounts, the company’s directors hailed “a strong performance, with sales growth and improving margins” evident during the period.

Numbers employed by the group last year increased from 497 to 540 and staff costs increased from €18.3m to €21.3m. In the prior year, documents show directors, John Power and Michael Power Jr enjoyed the vast proportion of a €10.7m dividend payout and last year the two directors received aggregate remuneration of €737,494.

Last year’s pre-tax profits also take account of interest payments of €410,286. Shareholder funds totalled €28.4m, including cash of €6.3m.

The company was established in 1935 on Dublin’s Pearse St and today has, along with its Dublin headquarters at Baldonnell Business Park, seven regional branches at Athlone, Cork, Galway, Limerick, Sligo, Wexford and Waterford.

MJ Flood has provided workstations at many well-known firms in Ireland including Vodafone, Wyeth, PWC and Symantec.

As well as expressing satisfaction with last year’s performance, MJ Flood’s management said in the accounts that “sales for 2015 are expected to exceed prior year levels and the directors expect profit before tax to be marginally better than recorded for 2014.”

The accounts also disclose that in a post-balance sheet event the group sold the trade and majority of assets of its security and guarding business.

The estimated consideration of the sale is €1.7m with associated costs of sale expected to reduce the profit on sale to €1.56m.

Last year’s profit also takes account of combined non-cash depreciation and amortisation costs of €2.6m.

A breakdown of the group’s revenues show that €52.98m was generated in Ireland, with €29.6m in ‘rest of European Union’.

The spend by the firm on operating lease rentals totalled €619,858 while the group’s capital expenditure totalled €2.09m.

MJ Flood’s grandson, Michael Power Sr took over the business in 1964 when it employed just six.

The accounts disclose that John and Michael Power Jr purchased an investment property from MJF Holdings for €3.8m in December 2014 and the transaction was carried out on an arm’s length basis.

The accounts also disclose the group paid rent of €647,858 during the year to co-ownerships under the control of the directors.