Business Irish

Tuesday 20 February 2018

Profits at Glen Electric down by over a third

Glen Electric is led by chief executive and chairman Sean O’Driscoll. Photo: Chris Ratcliffe/Bloomberg
Glen Electric is led by chief executive and chairman Sean O’Driscoll. Photo: Chris Ratcliffe/Bloomberg

Gordon Deegan

Pre-tax profits at Glen Electric, the Northern Ireland-based division of electric appliance giant Glen Dimplex, fell by 39pc to £41.75m (€56.71m) last year.

The firm's revenues fell by 9.5pc, from £845m to £765.4m in the 12 months to the end of March 31 last. Glen Electric Ltd is estimated to account for around half of the Dublin-based Glen Dimplex's overall business.

Glen Electric is the largest manufacturer of domestic heating appliances in the world, with a range of more than 400 products and is one of the largest employers on the island of Ireland with 4,977 staff.

Established by Dublin native Martin Naughton in 1973, its brands include Morphy Richards, Stoves, Roberts, and Belling along with Dimplex. Glen Dimplex has unlimited status and is not required to file public accounts.

Glen Electric is led by chief executive and chairman Sean O'Driscoll, inset, with Michael Maher also sitting on the board. Directors' emoluments last year totalled only £11,000 compared to £274,000 in the prior year.

According to the directors' report, "the directors will continue to develop the principal activities of the group and to identify areas with further growth potential and acquisitions, which would increase shareholder value".

The directors add that the group is engaged in R&D work in order to improve its product range and increase market share. However, the numbers employed in R&D fell from 384 to 373 during the year. The figures show that Glen Electric decreased its R&D spend - net of grants - last year from £26.96m to £22.39m. The firm's cost of sales last year decreased from £559.53m to £522.44m.

Operating profit last year decreased by 41pc to £42.4m. It made a profit of £421,000 on the sale of a fixed asset while interest and finance costs of £1m reduced the profits to £41.75m.

A breakdown of the firm's revenues show that the EU is the business's largest market, accounting for £593m of sales. Revenues in North America accounted for £75m with revenues in the rest of the world totalling £71m and sales in the rest of Europe accounting for £25.7m.

Glen Electric's staff costs fell from £191.4m to £183.54m as the numbers employed reduced from 5,006 to 4,977.

Last year it donated £400,000 to UK charities compared to £14,000 the previous year. Its balance sheet remains very strong with shareholder funds standing at £366m at the end of March last.

A corporate tax bill of £13m along with foreign exchange losses of £13.57m and actuarial pension losses of £11.2m reduced the business's post-tax profit to £3.93m.

Irish Independent

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