Profits for the group behind McMahon’s Builders Providers almost tripled to €30.6 million last year as it benefited from a surge in construction activity.
The group’s revenue increased from 95.5 million euros to 127.4 million euros, according to newly filed accounts for Derevoya, the company behind the group.
Owned by the Limerick based McMahon family, Derevoya traces its roots back to the early 19th century. The company was once the country’s largest timber importer.
Operating profit last year was €11.5 million in 2020, while it achieved a pre-tax profit of €27.1 million in 2021, compared to €9 million in 2020.
In 2019, Derevoya had posted a profit of 55.3 million euros, a tenfold increase in 2018, when sales rose 81 percent to almost 177 million euros.
However, 2019 value was impacted by a significant contribution from the sale of a development property in continental Europe.
Last year dividends totaled 970,000 euros, on top of the 779,000 euros paid in 2020, the balance sheet shows.
McMahons Builders Providers describes itself as one of the largest independent building contractors chains in Ireland. It has 15 stores, three of which are in Northern Ireland. It employs around 240 people.
The company has benefited from strong construction activity, which accelerated sharply after the toughest 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 Ireland’s construction sector started to contract midway this year.
“Continued strong price pressure led to a drop in inquiries, with new orders falling sharply and at an accelerated rate,” the company noted in its Construction Purchasing Managers’ Index released last month.
“As a result, overall construction activity fell for the first time since early 2021, when the sector was hit by Covid-19 restrictions,” he added.
All three construction categories saw activity fall in June, with both commercial and residential construction activity recording declines for the first time since the first half of 2021. However, the decline in residential construction activity was only marginal.
Continued strong price pressures contributed to a negative outlook for construction companies, with falling orders and signs of a broader economic slowdown bolstered expectations of a slowdown in activity.
Construction companies have also generally stopped hiring given the uncertainty the sector is now facing.
https://www.independent.ie/business/irish/profits-at-mcmahons-builders-providers-hit-almost-31m-41893208.html McMahon’s Builders Providers profits reached almost 31 million euros