Earnings jump at Noonan group as revenues top €200m
Earnings at the Noonan Services Group last year increased by 9pc to €12.2m as revenues topped €200m.
According to new accounts, Noonan Services Group achieved the jump in Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) as revenues increased by 29pc to €203.2m in the 12 months to the end of December 2014.
According to group ceo John O'Donoghue, the business delivered organic growth of 9pc driven by a significant increase in new business wins across its pillar service lines with existing and new clients.
Mr O'Donoghue said that "the acquisition of the Resource business in September 2014 accounts for 20pc of our revenue growth in 2014".
The Noonan group employs 6,812 people and according to Mr O'Donoghue 2014 was transformational in the development of the Noonan business with the acquisition of the Northern Ireland-based Resource providing the business with a leading market position in Northern Ireland.
The acquisition of Resource contributed to Noonan's revenues outside Ireland increasing almost three-fold from €16.8m to €46.2m.
On the Noonan performance, Mr O'Donoghue said: "Margins stabilised in 2014 across all key service lines.
"However, the overall margin fell due to changes in the sales mix," he said.
Pre-tax profits at Noonan Services Group declined by 32pc from €8.1m to €5.5m and this is mainly attributable to exceptional operating expenses of €2.3m.
The exceptional costs arose from integration costs, restructuring costs and fees relating to the acquisition of the Resource business.
In relation to 2015, Mr O'Donoghue said that the group has "a fantastic platform for growth".
The group's shareholders' funds stood at €35.9m.
The Noonan Group was first established in 1977 to provide contract cleaning services to a growing Irish public and private sector and in relation to the group's Republic of Ireland revenues of €158.5m in 2014, the figures show that cleaning and facility services account for €81.58m with man-guarding services totalling €40.27m.
The aggregate pay to five directors, Declan Doyle, Fintan Connolly, John O'Donoghue, John Machines and Ray Foran, who joined the board last October, totalled €915,913.
Staff costs last year rose from €106.7m to €118.9m.