The Naughton Foundation gets €20m from Glen Electric

The Naughton Foundation, which makes donations to education in engineering, science and technology has received €20.4m from one of the firms in Martin Naughton’s Glen Dimplex group.

One of the primary aims of the foundation is to fund a scholarship programme for Leaving Certificate students seeking to study engineering, mathematics, science and technology at college.

The scholarship programme which was set up in 2008, initially only applied to students in counties Louth, Meath and Monaghan, but its coverage has been widened. Last year, the foundation awarded 35 scholarships of €5,000 each.

The foundation, established by Mr Naughton and his wife Carmel also helps support other causes in the arts and education.

Mr Naughton established Glen Dimplex, one of Ireland’s most successful manufacturing companies, in 1973.

New accounts filed by Glen Electric, a division of Glen Dimplex based in the North, reveal that the company donated £17.8m (€20.4m) to the Naughton Foundation last year, and distributed £18.3m to all charities.

The donation meant pre-tax profits more than halved to £19.35m at Glen Electric Ltd in the 12 months to the end of March. It nonetheless posted a net profit of £12m, after paying corporation tax of £7.2m.

Its revenues fell by 5.5% from £765.49m to £723.2m.

Glen Electric Ltd is estimated to account for around half of Glen Dimplex’s overall business and revenues.

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 across Ireland employing 4,830 people.

The firm last year paid a dividend of £1.6m. Its balance sheet remains very strong with shareholder funds standing at £361m.

The company’s pre-tax profits last year take account of non-cash depreciation and amortisation costs of £15.8m.

“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 say.

A breakdown of the firm’s revenues show that the EU is the business’s largest market accounting for £559m of sales, while north America accounted for £78m in sales.

Revenues from the rest of the world totalled £60m, while sales in the rest of Europe accounted for £25m.

The firm employs 2,671 people in production; 1,330 in selling and distribution; and has 462 people working in administration and 367 in research and development.