The family-owned builders' merchants Dublin Providers Ltd has reported a rise of almost 20 per cent in pretax profits to €6.14 million, thanks to the sustained boom in the construction sector.
Newly-filed accounts for the Kilmainham-based DPL Group, which is controlled by the family of managing director Jerry Maher, show its turnover rose by more than 9 per cent last year to €89.75 million from €82.2 million.
With other outlets in Dún Laoghaire, Drogheda, Dundalk, Wexford, Cork and Galway, DPL it is one of the best-known indigenous companies in the builders' merchant business. The group sells building materials and bathroom suites to the trade and to the public. Amid a major round of consolidation in the DIY and building supply market, the group acquired Co Westmeath supplier Oliver Brennan (Mullingar) Ltd last year.
The accounts reveal that the total consideration for this transaction was €9.01 million. This included net assets of €5.72 million and goodwill of €3.3 million. The group's cashflow statement indicates it was advanced loans of €9 million during the year.
With operating profits on the rise to €5.91 million in 2005 from €4.73 million, DPL's operating profit margin rose to 6.58 per cent from 5.78 per cent. A net profit of €5.24 million brought the profits retained in the business to €25.36 million. Shareholders' funds at the end of 2005 stood at €43.77 million, up from €37.86 million the previous year.
Directors' remuneration at DPL rose to €1.25 million in 2005 from €890,342. The group's 347 staff received pay totalling €8.88 million. It paid out €899,991 in taxes during the year.
The group's land and buildings had a year-end valuation of €29.98 million and it held development land with a book value of €183,062. The group also has owns 25 per cent of a Stillorgan-based development company, Timoney Properties.
Mr Maher did not return a call to his office. According to the directors' report with the accounts, there have been no events since the start of the year that materially affect the group's position. "The directors expect the general level of activity to continue during the coming year," the report said.
Late last year, Grafton Group acquired the Roscommon merchant Garvey's and Dublin firm Davies, which has a plumbing and bathroom business.
These deals followed Grafton's €338 million acquisition of the Heiton's chain earlier in 2005. With the Competition Authority raising no objection to the transactions, analysts said at the time that Grafton might have a further role to play in the consolidation of the Irish market, even after the Heiton's deal.
Earlier this month, Limerick-based family-owned building materials' supplier, McMahon Group, bought rival James Johnston & Son, a Letterkenny-based group. McMahon, which is the third-largest player in the sector in Ireland, now has 14 outlets.
