Timber firm McMahon's sales halved to €77.2m
The holding company behind the Limerick-based McMahon timber importing and building materials firm has revealed the stark impact of the downturn, as turnover almost halved last year to €77.2m.
While Derevoya Holdings narrowed its operating loss to €4.2m from €7.8m in 2008, the pre-tax loss widened to €6.6m last year from €4.6m in the previous 12 months after gains on disposals were not repeated.
Derevoya is controlled by the McMahon family, and the business traces its roots back to the early 19th century. The majority of the financial statements relate to the building materials operations but also include some input from investment holdings.
The collapse in turnover relative to that recorded in the heady days of the boom, when revenue hit €189m in 2007 and profits totalled €10.2m, is a stark reminder of the group's exposure to the property sector. However, the group notes that it has been actively tackling its costs in light of the downturn.
"The group continues to apply a strict control on operating costs and expects a further improvement in performance in 2010," it says.
Managing director Mark McMahon was not available for comment yesterday.
The McMahon group operates 13 outlets around Ireland, including four in the North. It slashed its workforce from almost 400 to 254 at the end of last year.
The accounts note that the group had net debt of €70.3m at the end of 2009.