Strong performance marks a return to Celtic Tiger figures
THE group behind McMahons Builders Providers saw its profits surge tenfold to €55.3m during 2019, as its turnover jumped 81pc to almost €177m.
Newly-filed accounts for the group behind the chain, Derevoya Holdings, show the marked improvement in its business in the year before the pandemic.
However, the accounts also note that there was a “significant contribution” to the profit after tax figure of €55.3m in 2019 from the completion of the sale of a property held for development in continental Europe.
Of the after-tax profit, €12m was attributable to non-controlling interests, and the remainder to the owners of the parent company.
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 strong performance in 2019 marks a return to the kind of figures the group was posting during the Celtic Tiger, before the financial crisis saw it plunge into losses.
In 2007, it had generated revenue of €189m and profits of €10.2m.
McMahon Builders Providers bills itself as one of the largest independent builders providers chains in Ireland. It has 14 outlets, three of them in Northern Ireland.
“The principal activities of the group are general builder providers, property investment and development, and the manufacture of steel reinforcement products,” noted the accounts for 2019.
The performance in 2019 saw the amount of cash in the bank and at hand in the consolidated business climb to €35.3m by the end of the year. That compared to €6.7m a year earlier.
“All the group’s activities are associated with the construction sector, where there has been an improvement in growth levels during 2019 with continued growth being experienced in 2020,” noted the accounts.
“Tight control on the cost base was maintained during the year, resulting in an improvement in the underlying operating profits.”
While lockdowns saw most construction sites closed for long periods, builders providers benefited from home improvement activity during the Covid crisis.
The directors at Derevoya Holdings were paid a total of just over €2m in 2019, compared to €1.3m in 2018.