Appliance giant sees profits increase

Pre-tax profits at Glen Electric, the Northern Ireland-based division of electric appliance giant Glen Dimplex, last year increased by 13.5% to £68.5m (€87.2m).

Glen Electric Ltd is estimated to account for around half of the Dublin-based Glen Dimplex’s overall business.

New figures show the company recorded the increase in profit after revenues went up by 4%, from £812.6m to £845m (€1.07bn), in the 12 months to the end of March this year.

Glen Dimplex has unlimited status and is not required to file public accounts.

Glen Electric is the largest manufacturer of domestic heating appliances in the world, with a range of more than 400 products. It is also one of the largest employers on the island of Ireland, employing 5,013 people.

Established by Dublin man Martin Naughton in 1973, Glen Dimplex’s brands include Morphy Richards, Creda, Belling, as well as Dimplex.

The accounts show that Glen Electric paid a dividend of £8.4m to Glen Dimplex last year.

Glen Electric is led by chief executive and chairman Sean O’Driscoll, with Michael Maher also sitting on the board. The accounts disclose that the highest paid director — who is not identified — received remuneration of £274,000 last year.

The firm’s balance sheet remains very strong, with shareholder funds standing at £368m at the end of March last. New assets including cash totalled £217m.

The company’s pre-tax profits last year take account of non-cash depreciation costs of £15.3m.

According to the directors’ report attached to the accounts, “the directors will continue to develop the principal activities of the group and to identify areas with further growth potential and acquisitions, which would increase shareholder value”.

The directors add that the group is engaged in R&D work in order to improve its product range and to increase its market share — the numbers employed in R&D by the group during the year increased from 373 to 384.

The accounts show that the firm’s operating profit last year increased by 15%, from £62.5m to £72m. Interest and finance costs of £3.6m reduced the profits to £68.5m. The firm paid corporation tax of £21m resulting in a post-tax profit of £47.2m.