Profits treble at leading Limerick timber group

Pre-tax profits at the group owned by Limerick timber tycoons, the McMahon family, last year almost trebled to €2.88m.

Newly-filed accounts for Derevoya Holdings — the holding company behind McMahon’s Builders Providers — also show revenues jumped by 19% to €66.44m.

“All the group’s activities are associated with the construction sector where there has been an improvement in growth levels during 2015 and continued growth experienced in 2016,” management said in the directors’ report section of the accounts.

“Notwithstanding this, there has been tight control of the cost base during the year resulting in the improvements with the underlying operating profits. The group continues to apply a strict control on operating costs and an improved operating performance is forecast for 2016,” they added.

Numbers employed by the group last year increased from 185 to 209. Staff costs increased from €6.2m to €7.18m.

The group’s operating profits last year increased by 77.6% to €3.8m. However, interest payments totalling €935,810 reduced the firm’s profits to €2.88m.

The principal activities of the firm are general builder providers, property investment and development and manufacture of steel reinforcement products.

The amount owed by the group in bank loans at the end of 2015 stood at €33m.

The group’s revenues were split between €51.23m generated in the Republic and €15.2m in the North.

The group’s accumulated profits stood at €25.3m at the end of last year.

Shareholder funds stood at €35.2m.

The group’s cash during the year increased marginally to €5.19m.

Directors’ remuneration, including pension payments, increased from €678,560 to €707,364.