Pre-tax profits at Derevoya Holdings Ltd, the group owned by the McMahon family, renowned timber tycoons from Limerick, experienced a significant decline last year, falling to €13.38m. According to the newly filed accounts, the group, which operates McMahons Builder Providers, saw a 5.65% increase in revenues from €127.4m to €134.62m. However, this growth in revenue was overshadowed by a 58% decrease in pre-tax profits compared to the previous year’s figure of €31.7m. The decline in profits can be attributed to a write-down in investments amounting to €4.5m. In contrast, the previous year’s profits were boosted by a €9.46m increase in asset values.
Despite the decline in profits, the group’s strong performance allowed for a dividend payout of €1.24m to its shareholders in the previous year. The directors expressed their intention to declare and pay a dividend of €1m on the ordinary shares for 2022. The group continued its expansion in 2022 with the acquisition of Brian Fallon Hardware Ltd, a company based in Co Longford. The most recent accounts for the acquired firm revealed post-tax profits of €354,141 in 2021, with shareholder funds amounting to €2.8m.
The McMahon group is involved in various activities, including general builder providers, property investment and development, the manufacture of steel reinforcement products, and the provision of financing. The directors emphasized that the group had a strong balance sheet at the end of the year. The accounts show that as of December, the group had shareholder funds of €120.27m, which included accumulated profits of €103.9m. The group’s cash funds also saw a slight increase from €18.9m to €19.36m.
The group employed 31 more individuals in 2022, bringing the total number of employees to 270. A breakdown of the workforce revealed that 116 were engaged in sales and administration, 128 in production and warehouse, and 26 in management. Despite the increase in workforce, staff costs marginally declined from €11.97m to €11.43m.
The accounts disclose that the McMahon family, represented by Mark McMahon and his wife, Mai McMahon, hold 68.3% of the share capital of the company, thus controlling the group. In addition to their core operations, the group generated €1.99m in “other operating income” last year, consisting of rent amounting to €1.6m and sundry income of €376,000.
The reported profit for 2022 takes into account non-cash depreciation costs of €1.74m. Furthermore, the group invested €3.4m in tangible fixed assets and €2.58m in investments. On the other hand, the group received €9.4m from the disposal of assets. Directors’ remuneration, including pension payments, increased by 45% from €1.62m to €2.35m. This includes emoluments of €2.27m and pension contributions of €88,000. A note in the accounts clarifies that the remuneration pertains to directors of Derevoya and its subsidiaries, while the pension contributions involve nine directors.
In conclusion, Derevoya Holdings Ltd, owned by the McMahon family, experienced a significant decline in pre-tax profits in 2022. Despite this, the group’s strong balance sheet and continued expansion demonstrate their resilience in the market. The acquisition of Brian Fallon Hardware Ltd further strengthens their position in the industry, and the intention to declare a dividend for 2022 reflects their confidence in future performance.