Recently filed consolidated accounts by Derevoya Holdings Ltd and subsidiaries show that the group that operates McMahons’ Builder Providers recorded the decline in post-tax profits as revenues decreased by 15pc, or €20.5m, from €134.62m to €114.1m.
The post-tax profit of €10.56m follows post-tax profits of €12.59m in 2022.
Profits were boosted last year by a €3.79m non-cash gain in investments and other operating income of €2.28m.
The consistently strong profits of recent years allowed the group to pay a dividend of €1.07m in 2023.
The report states that it is the intention of the directors to declare and pay a dividend of €693,000 on the ordinary shares for 2023.
The group’s pre-tax profits declined marginally from €13.38m to €13.1m.
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.
The directors state that “the primary risk faced by the company and the group is the growing inflation rates and increases in prices of raw materials”.
The directors state that the group “had a strong balance sheet at year end”.
The directors state that due to the availability of liquidity from existing facilities, as well as significant headroom in the cashflow forecasts in the group’s scenario plans, the group “is well positioned to manage the risks relating to increased inflation and prices”.
At the end of December last the group had shareholder funds of €121.75m, which included accumulated profits of €107.3m.
The group’s cash funds decreased from €19.36m to €14.69m.
Numbers employed by the group last year decreased by 11 from 270 to 259.
A breakdown of the numbers employed show that there were 127 working in production, 96 in sales and administration and warehouse and 36 in management. Staff costs increased marginally from €11.43m to €11.9m.
“Other operating income” was last year made up of rent of €1.8m and €477,000 in sundry income.
The 2023 profit takes account of non-cash depreciation costs of €1.68m.
Directors’ remuneration, including pension payments, last year totalled €2.62m.
