Revenues surge to €303m in 'record year' for Noonan
Published 27/05/2016 | 02:30
Revenues topped €300m at the Noonan Services Group for the first time in "a truly outstanding year" for the group.
New accounts filed by the outsourcing group show that revenues jumped from €203m to €303m last year.
Earnings before interest, tax, depreciation and amortisation went up from €12.2m to €15.8m.
Pre-tax profits before rolled up shareholders' loans are taken into account rose from €5.5m in 2014 to €11m last year.
According to group ceo, John O'Donoghue, "2015 has been a truly outstanding year for Noonan.
"Strong organic growth coupled with full year impact of a prior year acquisition helped revenues to exceed €300m for the first time in our history."
Mr O'Donoghue said a significant successes was being awarded a contract by Dublin City Council for the refurbishment of social housing.
The group secured the largest hospital group contract in Ireland to come to market last year plus contracts with four police forces in the UK.
"Overall growth within existing accounts has been a key contributor to our growth in 2015. Clients begun investing in their assets following years of under achievement," he said.
"Clients are now increasing their spend on services with many now reverting to pre-recession levels of service requirements. We expect this trend to continue in 2016."
Last December, the group purchased Brinks Man Guarding business here and this increased the group headcount by a further 300 and will increase revenues by €8m.
Mr O'Donoghue said: "We believe that each of our service lines will continue to deliver sustainable growth.
"Our sales pipeline continues to grow in the UK and Ireland and gives us confidence when looking ahead to 2016. The business unit is positioned to deliver sustainable growth in the years ahead."
Mr O'Donoghue said that the business launched its five-year plan last year, adding: "Undoubtedly, this plan has had the impact of energising the business, bringing clarity to our vision and values and enables us to enter 2016 with clear direction and a highly engaged leadership team."
The group last year enjoyed operating profits of €12m compared to €7.6m in 2014.
The operating profits take account of exceptional operating expenses last year of €600,000 that arose from integration costs, restructuring costs and fees relating to the acquisition of the Brinks business.
Republic of Ireland revenues last year increased from €158.55m to €183.56m with cleaning and facility services accounting for more than half at €96.68m. The group continues to grow outside Ireland with €120.3m generated compared to €46.2m in 2014.
The report states that overall margin last year fell due to changes in the sales mix as a result of the prior year acquisition which included high volume and lower margin.
Numbers employed at the group last year rose from 6,812 to 7,125. Staff costs went up from €118.93m to €140.68m.
The group's shareholders' funds stood at €39.16m while the group's cash during the year rose from €1.26m to €2.28m. The Noonan Group was established in 1977 to provide contract cleaning services to a growing Irish public and private sector.