Noonan Services sales of €200m
According to accounts, Noonan Services Group Ltd achieved the jump in earnings before interest, tax, depreciation and amortisation (EBITDA) as revenues increased by 29% to €203.2m in the 12 months to the end of December 2014.
But pre-tax profits at the firm last year declined by 32% from €8.1m to €5.5m and this is mainly attributable to exceptional operating expenses of €2.3m.
According to group chief executive, John O’Donoghue, the business delivered organic growth of 9% driven by a significant increase in new business wins across its key service lines with existing and new clients.
Mr O’Donoghue said the acquisition of the Resource business in September 2014 accounted for 20% of the company’s revenue growth in 2014.
The Noonan Group employs 6,812 people and according to Mr O’Donoghue 2014 was transformational in the development of the Noonan business after it acquired Northern Ireland-based Resource, providing the business with a leading market position in the North and a platform to grow in Britain.
The acquisition contributed to Noonan’s revenues outside Ireland increasing almost threefold from €16.8m to €46.2m.
On the Noonan performance, Mr O’Donoghue said: “Margins stabilised in 2014 across all key service lines. However, the overall margin fell due to changes in the sales mix.”
The exceptional costs arose from integration costs, restructuring costs and fees relating to the acquisition of the Resource business.
Bank debt at the end of December 2014 stood at €31m. Mr O’Donoghue said the directors are very pleased with the speed at which the debt is being paid down and expect this trend to resume in 2015.
In relation to 2015, he said the group has “a fantastic platform for growth”.
Shareholders’ funds stood at €35.9m, including accumulated profits of €2.99m.
Cash during the year fell from €11.37m to €1.26m.
The group was first established in 1977 to provide contract cleaning services to the Irish public and private sectors. Of total revenues of €158.5m in the republic in 2014, the figures show that cleaning and facility services accounted for €81.58m, with security-guarding services totalling €40.27m.
The aggregate pay to five directors, Declan Doyle, Fintan Connolly, John O’Donoghue, John Machines and Ray Foran, who joined the board on October 31 last year, totalled €915,913 compared to €781,645 in 2013.
Overall, staff costs jumped from €106.7m to €118.9m.
