| 21.6°C Dublin

Profits at McMahons Builders Providers hit almost €31m


McMahons Builders Providers

McMahons Builders Providers

McMahons Builders Providers

Profits at the group behind McMahons Builders Providers nearly tripled last year to €30.6m as it benefited from a surge in construction activity.

Revenue at the group jumped to €127.4m from €95.5m, newly-filed accounts for Derevoya, the company behind the group, show.

Derevoya is owned by the Limerick-based McMahon family and traces its roots back to the early 19th century. At one stage, the company was the largest timber importer in the country.

The operating profit last year compared with €11.5m in 2020, while it made a pre-tax profit of €27.1m in 2021 compared with €9m in 2020.

In 2019, Derevoya had posted profits of €55.3m, a tenfold increase in 2018, as revenue rose 81pc to nearly €177m.

However, the 2019 figure was flattered by a significant contribution from the sale of a property that had been held for development in continental Europe.

Dividends of €970,000 were paid last year, on top of €779,000 that were paid in 2020, the accounts show.

McMahons Builders Providers bills itself as one of the largest independent builders providers chains in Ireland. It has 15 outlets, three of them in Northern Ireland. It employs about 240 people.

The firm has benefited from strong construction activity, which accelerated sharply once the severest of pandemic restrictions were initially lifted.

However, rising inflation and broader economic uncertainty have hit the sector this year.

BNP Paribas Real Estate Ireland has noted that the Irish construction sector began to contract in the middle of this year.

“Continued severe price pressures led to a drop-off in enquiries, with new orders falling at a sharp and accelerated pace,” it noted in its Construction Purchasing Managers’ Index published last month.

“As a result, total construction activity fell for the first time since early-2021 when the sector was impacted by Covid-19 restrictions,” it added.

All three categories of construction saw reductions in activity during June, with both commercial and housing activity posting declines for the first time since the first half of 2021. The fall in housing activity was only marginal, however.

Business Newsletter

Read the leading stories from the world of business.

This field is required

Ongoing steep price pressures contributed to a negative outlook among construction firms, with falling new orders and signs of a wider economic slowdown adding to expectations of a fall in activity.

Construction firms have also generally stalled hiring amid the uncertainty now facing the sector.

Most Watched