Monday 23 July 2018

Profits at Glen Dimplex arm hit €37.8m despite dip in revenues

Sean O’Driscoll, president of Glen Dimplex, which reported that the trading environment in the UK is challenging following the Brexit vote
Sean O’Driscoll, president of Glen Dimplex, which reported that the trading environment in the UK is challenging following the Brexit vote

Gordon Deegan

Pre-tax profits at a Glen Dimplex group of companies increased by 7pc to €37.84m last year in spite of a dip in revenues.

Glen Dimplex is the largest manufacturer of electrical heating worldwide.

New accounts for the Dublin-based Glen Dimplex Europe Holdings Ltd show that revenues dipped by 2pc from €1bn to €989.7m in the 12 months to the end of March last.

The holding company's revenues are made up of revenues from 29 subsidiaries based here and in Northern Ireland, England, Germany, Austria, Canada, Holland, France, Norway, the United States, New Zealand, Australia, China and India.

The directors state that the trading environment in the UK is challenging following the decision of the UK to exit the EU.

The group last year paid dividends of €13m and this followed a dividend payout of €8.8m in 2016.

The group's balance sheet remains very strong with shareholder funds totalling €436.47m. Accumulated profits stood at €371m.

The directors state that the group is in a strong cash position with cash of €302m at the end of March 2017.

The directors state that they will continue to identity areas with further growth potential and acquisitions which would increase shareholder value.

Numbers employed by the group last year decreased slightly, going from 5,260 to 5,246, with staff costs falling from €264m to €258m.

A breakdown of the numbers employed show that 2,847 are engaged in production; 1,407 in selling and distribution; 578 in administration; and 414 in research and development.

The profit last year takes account of non-cash depreciation, amortisation and impairment costs of €24m.

The accounts confirm that auditors KPMG received fees of €1.2m for a group audit, tax advisory services and other assurance services last year.

A breakdown of the group's revenues show that the bulk - 76.5pc - were generated in the European Union.

And €102m (10pc) was recorded in the United States with €37.25m, or 3pc, in Rest of Europe. Last year, the group incurred research and development expenditure of €32m and this followed €32.5m in R&D in 2016.

Irish Independent

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