Revenues at the Naughton family-owned Glen Dimplex electrical group have started to rebound quickly, according to accounts for one of the main cogs in the group.
Dublin-registered Glen Dimplex Europe Holdings, which captures the majority of the group’s global business, recorded a 17 per cent rise in turnover last year to more than €930 million, financial statements obtained by The Irish Times suggest.
The accounts, which cover the 12 months to the end of last September, show a return to profit after losses incurred at the height of the pandemic.
The unit recorded an operating profit of €16.3 million, compared with an operating loss of €10.2 million the prior year. After adjustments, the profit before tax was €11 million, compared with a loss of €42.6 million in 2020.
A note by the directors, who include chief executive Fergal Leamy, attributes the financial turnaround to Glen Dimplex reaping the fruits of a €180 million investment and restructuring programme.
The company is retooling its operations to seek growth primarily in the heating and ventilation and flame divisions. The flame division includes decorative fake fires that sit in hearths.
The directors said the investment programme had led to the “refinement and evolution” of the business structure, and that the prior year’s losses were due to “peak investment” in the change programme.
The directors highlighted that they expect growth in future to be driven by Government grants for less environmentally damaging heating systems. It said last year’s growth had continued into 2022.
Glen Dimplex Europe Holdings invested more than €29 million in research and development last year, the accounts suggest. It employed close to 4,400 staff. Covid wage subsidies received fell to €1 million from €8 million.
The management team at the business shared a pay pot of €7.4 million, up from €6.6 million. A Naughton family-controlled entity in the Isle of Man that owns the business was paid dividends of €2.45 million, while €2.5 million was paid to the Naughton Foundation, a charity established by the company’s founder, industrialist Martin Naughton.
Glen Dimplex, which also operates a consumer appliances division, recently agreed to sell its Morphy Richards home appliances brand to a Chinese company, in a deal believed to be worth between €175 million and €200 million.
