Pre-tax profits at Glen Electric — the Northern Ireland-based division of electrical appliance giant Glen Dimplex — fell by 15% last year to £62.8m (€76.8m), figures show.
Glen Electric is estimated to account for about half of Glen Dimplex’s overall business, and figures show the company’s revenues decreased by 1.5% from £856.4m to £843.1m in the 12 months to the end of March this year.
Glen Dimplex 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 over 400 products. It is one of the largest employers in Ireland with 5,160 staff.
Established by Dublin native Martin Naughton and four colleagues in 1973, Glen Dimplex initially made oil-filled radiators and employed seven people.
Today, Glen Dimplex’s brands include Morphy Richards, Roberts, Stoves, Belling, and Dimplex.
Glen Electric’s revenues account for 23 subsidiaries with nine in England, two in Northern Ireland, and units in Germany, Austria, Holland, Canada, France, Norway, the US, New Zealand, and Japan.
The company is led by CEO and chairman Seán O’Driscoll and earlier this month, Mr O’Driscoll confirmed Glen Dimplex was investing €10m in its new Quantum domestic storage heating system — the largest amount the company has ever spent on one technology.
The Glen Electric accounts, just filed with Companies House in the UK, show the company’s three directors shared emoluments last year of £558,000, with the highest paid and unidentified director receiving £473,000 — an increase of £11,000 on fiscal 2011.
The figures show the firm recorded the lower profits last year due to higher operating expenses rising from £208.6m to £216.8m.
The increase includes administration expenses increasing from £54.4m to £58.8m and selling and distribution costs increasing from £130m to £132m. The firm’s research and development& spend also increased from £23.8m to £25.6m.
Glen Electric’s cost of sales decreased from £567.4m to £558.9m
The accounts confirm that the firm last year paid a dividend of £4m following a dividend payout of £13m in fiscal 2011.
The directors state they “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 figures show that non-cash depreciation costs last year amounted to £14.7m. The filings confirm that the company had net assets of £318m, including £172m in cash. The firm’s accumulated profits stood at £277.4m at the end of March.
The figures show that 76% or £639.3m of the company’s revenues arose from the sale of heating, cooking and other domestic appliances in Europe with 10% or £86.8m in North America; 10% or £85.7m in the rest of world, and the remainder in the rest of Europe.
The numbers employed last year decreased by 51 from 5,211 to 5,160 with some 3,110 engaged in production; 1,249 in selling, and distribution; 452 in administration; and 342 in research and development.
The company’s staff costs last year reduced by 1% from £193.7m to £191.9m.
The figures show that the company incurred an actuarial loss last year on its employees’ pension scheme last year of £15.7m that followed a gain of £18m in fiscal 2011.
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