€20m Naughton Foundation donation halves Glen Electric profit
Pre-tax profits at Glen Electric, the Northern Ireland-based division of electric appliance giant Glen Dimplex, more than halved last year to £19.35m (€18.2m), but only because of a boost in support for worthy causes.
The engineering, science and technology education sectors were given a major boost as the philanthropic Naughton Foundation received a €20.5m cash injection.
The foundation was established in 1994 by one of Ireland's most successful industrialists, Martin Naughton and his wife, Carmel, with the goal of supporting worthwhile causes in the arts and education.
One of the primary aims of the foundation is to fund a scholarship programme to increase its support for Leaving Certificate students who would like to study engineering, mathematics, science and technology at third level.
The scholarship programme was established in 2008. It initially applied only to students from counties Louth, Meath and Monaghan, but has expanded nationwide.
Mr Naughton established one of Ireland's most successful manufacturing companies, Glen Dimplex, in 1973.
Accounts just filed by Glen Electric, the Northern Ireland-based division of Glen Dimplex show the family-owned company donated £17.8m (€20.5m) to the Naughton Foundation last year.
In total, the firm donated £18.3m to charities last year.
The donation resulted in pre-tax profits more than halving to £19.35m (€22.2m) at Glen Electric Ltd in the 12 months to the end of March last.
Glen Electric Ltd is estimated to account for around half of Glen Dimplex's overall business. Revenues at Glen Electric last year declined by 5.5pc from £765.49m to £723.22m (€832m).
Glen Electric is the largest manufacturer of domestic heating appliances in the world. It is one of the largest employers on the island of Ireland employing 4,830.
The firm last year paid a dividend of £1.6m.
The group's balance sheet remains very strong with shareholder funds standing at £361m at the end of March last. The firm's net assets included cash totalling £241m.