Profits fall by 39% at Glen Electric

Pre-tax profits at Glen Electric, the Northern Ireland-based division of electric appliance giant, Glen Dimplex last year decreased by 39% to £41.75m (€56.71m).

It is estimated Glen Electric accounts for around half its Dublin-based parent’s overall business.

As well as the profit decline, newly filed accounts show the subsidiary’s revenues declined by 9.5% - from £845m to £765.4m - in the 12 months to the end of last March. Glen Dimplex, itself, 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 and is one of the largest employers in Ireland, employing 4,977.

Established by Martin Naughton in 1973, Glen Dimplex’s brands include Morphy Richards, Stoves, Roberts, Belling along with Dimplex.

Glen Electric is led by chief executive and chairman, Sean O’Driscoll with Michael Maher also sitting on the board.

Directors’ pay last year totalled only £11,000 compared to £274,000 in the prior year.

Glen Electric, which has 20 subsidiaries worldwide, last year donated £400,000 to UK charities compared to £14,000 the previous year.

Its balance sheet remains very strong and net assets, at year end, included £204m in cash.

According to the directors’ statement within the accounts, management 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”.

Operating profit fell by 41%, to £42.4m, while the firm’s corporate tax bill of £13m - along with foreign exchange losses of £13.57m and actuarial pension losses of £11.2m - reduced the its post tax profit to £3.93m.

A breakdown of Glen Electric’s revenues show the EU is its largest market accounting for £593m of sales.

Revenues in North America amounted to £75m, revenues in rest of the world totalling £71m and sales in rest of Europe accounting for £25.7m.