Dublin Providers Ltd warns of Covid-19 impact on operations
Pretax profit slips 5% in figures predating coronavirus as chain looks to cut costs
Dublin Providers Ltd: There are “significant risks and uncertainties facing the group at this time due to the outbreak of the Covid-19 pandemic”. Photograph: Chris Ratcliffe/Bloomberg
Builders’ merchant chain, Dublin Providers Ltd (DPL), warned that Covid-19 poses “many risks” to the group as it reported that profits dipped last year to €2.32 million.
Accounts just filed for the group show that sales rose about 4 per cent to €54.1 million in 2019 but pretax profit slipped 5 per cent to €2.32 million from €2.44 million the previous year.
DPL sells timber, heating and plumbing supplies, electrical equipment, fittings and other materials to builders and the general public.
‘Risks and uncertainties’
Chairman Jeremiah Maher and managing director John Peare say in the directors’ report that there are “significant risks and uncertainties facing the group at this time due to the outbreak of the Covid-19 pandemic”.
The coronavirus outbreak has no impact on the results released this week by DPL as they cover 2019.
DPL closed its premises for all but essential services between March 30th this year and May 15th.
“The directors are actively monitoring this situation and they are taking appropriate steps to protect the group’s business to the greatest possible extent,” Mr Maher and Mr Peare say. They add that this includes cutting DPL’s costs.
DPL had net assets of €36.84 million at the end of last year, up from €34.72 million 12 months earlier. Stocks and debtors made up most of this, but the company also had €2.1 million in cash.
Its biggest liability was €13.33 million due to trade creditors, that is businesses which supplied the group with goods and services.
DPL employed 185 people in 2019 compared with 178 the previous year. Wages, pension costs and welfare contributions came to almost €5.8 million, the accounts show.