The company behind the McMahon’s Builders Providers chain recorded an 83 per cent increase in profit last year as trading rebounded in tandem with the growth in the Republic’s construction sector.
Recently filed accounts for Derevoya Holdings Limited show the Limerick-based business with 14 branches across Ireland posted a pre-tax profit of €7.88 million for 2017, with continued growth experienced so far this year.
Additionally, a “tight control” on the company’s cost base resulted in an improvement in the group’s operating profit, which increased 62 per cent to €8.84 million.
Turnover at the company, which is one of the largest independent building providers on the island, advanced 10 per cent to €83.18 million, almost €73 million of which was generated in the Republic. The remainder relates to its three outlets in the North.
Founded in 1830, the company was at one point in the early 1900s the largest timber supplier in the country. It subsequently expanded to include all building materials used in the construction industry.
Employee numbers at the group also increased, from 220 to 243, last year with wage and salary costs rising 15 per cent to €7.8 million.
The four directors received remuneration of €1.16 million in the year.
Investment assets
Aside from the builders providers business, Derevoya also holds investment assets including property assets held in Germany and Ireland.
Its outstanding loans totalled €25.2 million by the year end, having fallen almost 8 per cent on the previous year. Some €3.49 million was owed to David McMahon, one of two directors with shares in the group, the other being Mark McMahon, the company’s chief executive.
Last year the group restructured its financing through Ulster Bank while an internal restructuring last year included loan write-offs between group companies as well as debt forgiveness.
“The group continues to apply a strict control on operating costs, and an improved operating performance is forecast for 2018,” the directors said in their review of the business.
A dividend of €388,036 was paid in April to ordinary shareholders, just over half of the dividend paid last year.
