Family builders' supplier posts €14.6m profit

The McMahon Group, a family-owned building materials, timber and property development group based in Limerick, had a turnover of €177 million in 2005, according to its latest accounts.

The group, owned by members of the McMahon family, made a pretax profit of €14.58 million in 2005, a significant jump on the €8.2 million pretax profit it achieved in 2004.

The group is the third-largest builders' providers in the State, after Brooks and Grafton. It also has outlets in Northern Ireland. It has been experiencing steady, strong growth on the back of the booming construction sector.

The directors, in their report accompanying the 2005 accounts, point out that the group's activities are associated with the construction sector which has, over the last number of years, seen "significant growth".

"Current indications support the continued strength of the sector," they say.

As well as enjoying organic growth linked to the booming construction sector, the group has also been growing by way of acquisitions over recent years. Earlier this year it purchased Co Donegal builders' providers James Johnston & Sons for an undisclosed price.

"Activity levels within the group continue to grow strongly in line with developments within the sector, with year-on-year sales growth of €32.5 million, or 22.5 per cent," the directors said in the accounts.

The growth in the group's profits in 2005 was reflected in the dividend paid to shareholders, which was €15 per share, up from €8.30 per share the previous year. The total dividend payout was €1.29 million.

The accumulated profits at the end of 2005 were €60 million. The group had investment properties worth €3.6 million at the end of 2005, as well as lands and buildings worth €35.9 million.

The group employed an average of 461 people during 2005 at a cost of €15.5 million. The directors received total remuneration of €1.56 million, up from €1 million in 2004.

The parent company of the group is Derevoya Holdings, the main shareholders in which are, in descending sizes of shareholdings: David McMahon, Mark McMahon, Anthony Francis McMahon and Stephen Mulhall.

The main elements of the group have a long history. James McMahon Ltd was established in Limerick in 1830 and concentrated on timber and cooperage work. It grew organically and through acquisitions, especially in the period since 1960. In 1999 it bought the R Keys Group, a general merchants founded in Derry in 1890, which had grown over the years by way of organic growth and acquisitions.

There was no one from the McMahon Group available for comment yesterday. The group's website says it currently has 13 branches in Ireland - nine in the Republic and four in Northern Ireland - and "we have ambitious plans for further growth and expansion".