Revenues climb to €134m at McMahons Builder Providers

Strong performance allowed the business to pay a €1.24m dividend to its shareholders last year

The group’s cash funds increased from €18.9m to €19.36m. File picture

Pre-tax profits at the group owned by Limerick timber tycoons the McMahon family last year more than halved to €13.38m.

In new accounts filed by Derevoya Holdings Ltd and subsidiaries, they show the group that operates McMahons Builder Providers recorded the decline in pre-tax profits as revenues increased by 5.65pc from €127.4m to €134.62m.

The pre-tax profit of €13.38m was a 58% decrease on the pre-tax profits of €31.7m for 2021.

Pre-tax profits were hit last year by a €4.5m write down in investments, while pre-tax profits were boosted in the prior year by a €9.46m increase in asset values.

The strong performance by the group allowed the business to pay a €1.24m dividend to its shareholders last year.

The directors said it was their intention to declare and pay a dividend of €1m on the ordinary shares for 2022.

The group continued to expand during 2022, with the purchase of Brian Fallon Hardware Ltd. The most recent accounts for the Co Longford firm show it recorded post-tax profits of €354,141 in 2021. The firm had shareholder funds of €2.8m.

The principal activities of the McMahon group are general builder providers, property investment and development, the manufacture of steel reinforcement products and the provision of financing.

'Strong balance sheet'

The directors said the group “had a strong balance sheet at year end” and the accounts show that at the end of December last, the group had shareholder funds of €120.27m, which included accumulated profits of €103.9m.

The group’s cash funds increased from €18.9m to €19.36m.

Numbers employed by the group last year increased by 31, from 239 to 270.

A breakdown of the numbers employed show there were 116 employed in sales and administration, 128 in production and warehouse, and 26 in management.

Staff costs declined marginally from €11.97m to €11.43m.

The accounts disclose the group is controlled by Mark McMahon and his wife, Mai McMahon, who together hold 68.3% of the share capital of the company.

The group also recorded revenues of €1.99m in "other operating income" last year, made up of rent of €1.6m and €376,000 in sundry income.

The 2022 profit takes account of non-cash depreciation costs of €1.74m.

Last year, the group paid €3.4m to purchase tangible fixed assets and €2.58m on the purchase of investments. The group received €9.4m on the disposal of assets.

Directors’ remuneration, including pension payments, last year increased by 45%, from €1.62m to €2.35m, made up of emoluments of €2.27m and €88,000 in pension contributions.

A note says the payout concerns payment made to directors of Derevoya and subsidiaries and the pension contributions concern nine directors.