Timber firm profits up 37%

Pre-tax profits at timber processing group, Glennon Bros last year increased by 37% to €6.84 million.

The group operates plants in Fermoy, Co Cork, and Longford, along with facilities in the UK, and this year commissioned a €13m secondary processing line at Fermoy.

According to accounts just filed by Glennon Bros Holdings Ltd, revenues increased by 10.8%– from €95m to €105.13m – in the 12 months to the end of December last.

The company won the Industry section in the Ernst & Young Entrepreneur of the Year award in 2010 and the new figures show the Longford-based group had accumulated profits last year of €48.9m, while the numbers it employs remained static at 367.

The group’s cash declined from €21.92m to €19.65m and, according to a company spokesman, the firm’s UK business delivered the profit last year.

He said that 2013 was another difficult year in Ireland, but pointed out that the business achieved strong export levels here of €23.5m of revenues.

Last year, Glennon Bros celebrated 10 years in business with Taoiseach Enda Kenny delivering the keynote address at the firm’s celebrations.

On the outlook for 2014, the spokesman said: “The first nine months in the UK have improved on the similar period in 2013, though margins are squeezed by higher log input costs, partially offset by an improvement in sawn timber prices.

He added: “2014 has been a difficult year in Ireland, caused by the continuing shortage of logs in Ireland resulting in high log prices. There has been some stabilisation in the Irish construction market, resulting in some increased sawn timber sales in that market. Nevertheless, around half of the output from the Irish business is still exported and it is essential that we have continuity of raw material supply, as we strive to develop export markets.”

He also stated that “Glennon Brothers is very concerned that the partial merger between Coillte and Bord na Mona will have a negative impact on sawmillers, farmers, and private forestry growers. There are only two core markets for wood residue and pulpwood in this country, and this plan will reduce this to a single monopoly, inevitably choking the market”.

The group’s profit was recorded after non-cash depreciation costs of €3.1m. The figures show that a dividend of €5,096 was paid last year and this followed a dividend payout of €42,978 in 2012.