Pre-tax profits at the builder providers group operated by Limerick timber tycoons the McMahon family last year increased by 32% to €17.87m.
New consolidated accounts filed by Derevoya Holdings Ltd show that McMahon Builder Providers business’s profits increased as revenues rose by 27% from €122.87m to €157.2m.
Profits were boosted last year by other operating income of €2.44m.
The consistently strong profits of recent years allowed the group to pay a dividend last year of €829,000 on the 2024 profits.
The report states that it is the intention of the directors to declare and pay a dividend of €1.83m on the ordinary shares for 2025.
The group recorded an operating profit of €16.37m and income of €1.29m from other fixed asset investments along with net interest income of €441,000 resulting in the pre-tax profits of €17.87m.
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 accounts state that Mark McMahon and wife Mai McMahon together hold 78.23% of the company’s share capital.
The business was established in 1830 and was involved in cooperage, manufacturing, and sawmilling and today, McMahons Builders Providers has grown to become one of the country’s largest independent builder’s providers with a network of 15 stores north and south.
The directors state that “the primary risk faced by the company and the group is the growing inflation rates and increases in prices of raw materials”.
They state that the group “had a strong balance sheet at year end” and the group “is well positioned to manage the risks relating to increased inflation and prices”.
The group’s Irish revenues last year increased by 33% from €104.84m to €139.6m while Northern Ireland and UK revenues dipped from €18.03m to €17.59m.
At the end of December, the group had shareholder funds of €135.27m which included accumulated profits of €129.2m.
The group’s cash funds increased from €11.96m to €26.47m.
Numbers employed by the group last year decreased from 272 to 265 made up of 132 in production and warehouse, 94 in sales and administration and 39 in management.
Staff costs increased from €13.45m to €14.18m.
The group recorded a post tax profit of €14.85m after incurring a corporation tax charge of €3.02m.
“Other operating income” was made up of rent of €2m and €445,000 in sundry income.
The 2025 profit takes account of non-cash depreciation costs of €2.3m.
In 2025, the group paid out €4.23m to purchase tangible fixed assets while the group also repaid bank borrowings of €4.58m.
Directors’ remuneration, including pension payments, last year decreased from €1.57m to €1.4m.
Reporting by Gordon Deegan
