Saturday 24 August 2019

Profits at Dublin Glen Dimplex unit slide after restructuring

Accounts: The Glen Dimplex HQ in Dublin
Accounts: The Glen Dimplex HQ in Dublin

Pre-tax profits at a Dublin-based unit of Glen Dimplex plummeted to €719,000 last year as a result of €21.6m in restructuring charges.

New accounts filed by Glen Dimplex Europe Holdings Ltd show that the business recorded the sharp drop in pre-tax profits as revenues climbed by 40pc, from €989.7m to €1.39bn.

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The large hike in revenues is attributable to the period covering 18 months, following the prior 12 months.

The accounts show that pre-tax profits plunged by 98pc, from €37.84m to €719,000, in the 18 months to the end of September last. The accounts also show that the two directors, Donal Flynn and David Martin, shared pay of €1.7m over the 18 months. The pay to key management personnel totalled €9.6m.

That pay level of €9.6m was more than double the €3.8m paid out to key management personnel for the prior 12-month period.

Numbers employed by the firm increased from 5,246 to 5,267, with staff costs of €385m. The directors stated that “the trading environment has been challenging, particularly in the UK, in anticipation of the UK leaving the EU”.

However, they added that the group is in a strong position, with cash of €203m at September 30 last.

They stated: “As a result of the challenging trading environment, the group has made a strategic decision to restructure parts of the group, which resulted in non-trading costs of €21.6m being charged in the period.”

During the year, the group had made donations of €1.8m for educational purposes.

The firm paid out dividends of €18m last year, and this followed a dividend payout of €13m in the prior year.

The principal activity of the business is the manufacture and sale of heating, renewable energy, cooking, and other domestic appliances.

The firm recorded an operating profit of £15.66m before the restructuring charges and interest costs of €3.18m were taken into account. The operating profit also takes into account a profit of €9.79m on the disposal of fixed assets.

The pre-tax profit last year takes account of non-cash depreciation costs of €33.2m.

At the end of September last, the group had shareholder funds of €359m, including accumulated profits of €345m.

Group auditor KPMG was paid €1.58m for its services.

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