Revenues at Limerick building providers hit €135m

PRE-TAX profits at the group owned by Limerick timber tycoons, the McMahon family more than halved last year, writes Gordon Deegan.

New accounts filed by Derevoya Holdings Ltd and subsidiaries, show the group that operates McMahons’ Builder Providers recorded a significant decline in pre-tax profits as revenues increased by 5.65% from €127.4m to €134.62m.

The pre-tax profit of €13.38m was a 58% decrease on the pre-tax profits of €31.7m for 2021.

Pre-tax profits were hit last year by a €4.5m write down in investments while pre-tax profits were boosted in the prior year by a €9.46m increase in asset values.

The strong performance by the group, which is based at Ashbourne Business Park at Dock Road, Limerick, allowed the business to pay a €1.24m dividend to its shareholders last year.

In the accounts, the directors state that it is their intention to declare and pay a dividend of €1m on the ordinary shares for the year 2022.

The group continued to expand during 2022 with the purchase of Brian Fallon Hardware Ltd.

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The most recent accounts for that company, which is based in County Longford, show that it recorded post-tax profits of €354,141 in 2021.

The company had shareholder funds of €2.8m.

The principal activities of the McMahon group are general builder providers, property investment and development, the manufacture of steel reinforcement products and the provision of financing.

The directors state that the Group “had a strong balance sheet at year end” and the accounts show that at the end of December last the group had shareholder funds of €120.27m which included accumulated profits of €103.9m.

The group’s cash funds increased from €18.9m to €19.36m.

Numbers employed by the group during 2022 increased by 31 from 239 to 270.

A breakdown of the numbers employed show that there were 116 employed in sales and administration; 128 in production and warehouse and 26 in management.

Staff costs declined marginally in 2022, from €11.97m to €11.43m.

The accounts disclose that the group is controlled by Mark McMahon and his spouse, Mai McMahon.

Together, they hold 68.3% of the share capital of the company.