Glen Dimplex founder Martin Naughton
Pre-tax profits at the main Irish-based unit of Glen Dimplex, an electrical goods company owned by the Louth-based Naughton family, increased last year to €120.93m.
New consolidated accounts filed by Glen Dimplex Europe Holdings Ltd show the business enjoyed the boost in profits as revenues rose by 2pc from €944.03m to €962.7m in the 12 months to the end of September last.
The 182pc increase in profits coincided with Glen Dimplex gaining €185m from completing the sale of its global brand rights of Morphy Richards home appliances to a Chinese acquirer, Guangdong Xinbao Electrical Appliance Holdings (Xinbao).
Morphy Richards is a British brand that was acquired by Glen Dimplex founder and industrialist Martin Naughton in the mid-1980s. The deal saw Glen Dimplex keep rights to distribute the brand for the Chinese company under licence in Ireland, Australia and New Zealand for at least 10 years.
Numbers employed across Glen Dimplex Europe Holdings last year increased by 204 to 4,595 as staff costs rose from €248.4m to €253.9m.
The group’s R&D spend totalled €30.8m.
The group recorded the sharp jump in pre-tax profits chiefly from a €170.69m gain on the sale of intangible assets.
The gain was offset by restructuring costs of €12.37m, a non-cash asset impairment of €28.7m, €10.8m donated for educational purposes, €8.5m in closure costs, and ‘other’ costs of €534,000 resulting in a net gain on the group’s profit and loss account of €109.72m.
The directors state that “our strategic focus and cost discipline has enabled strong year-on-year performance, and continuing progress in delivering on our long-term ambitions”.
They state that the increase in turnover was driven by strong growth in a number of categories “and a tapering of sales in some more traditional areas of activity”.
The group was busy on the acquisition trail last year and that has continued into the current year including a March 2023 €44.7m spend on Norwegian firm Adax AS.
In February, the group announced a €50m investment and reorganisation of its Irish operations as it positions for growth.
Last year, dividends of €3.8m were paid out.
Accumulated profits at the end of September last totalled €402m as cash funds amounted to €271.57m.
