Pretax profits at the company behind McCormick Macnaughton, which owns the Caterpillar machinery brand in Ireland, rose by 38 per cent to €7.2 million in 2006, according to accounts just filed.

Turnover at Ballymana Holdings, which is owned by businessman Malcolm Macnaughton, rose by 11.3 per cent to €139.6 million, while its operating profit rose 34 per cent to €9.5 million.

The company distributes Caterpillar construction equipment, marine and power generation products from branches in Dublin, Lisburn and Cork and from dealers in Donegal, Kerry and Limerick. It has 20 rental stores and a fleet of mobile units.

Speaking on behalf of Mr Macnaughton, the group's chief executive, Liam O'Dea, said the company had "a great year in 2006 and an even better year in 2007". He said it had noted an increase in its rental business due to the "cooling off" in the construction sector as building companies buy less machinery and equipment to save on costs. Mr O'Dea said rental accounted for 20 per cent of revenues in 2006.

McCormick Macnaughton employed 435 staff in 2006, rising to 445 this year.

Mr O'Dea said the group was building a new headquarters at Aerodrome Industrial Park on the Naas Road in Dublin and would be moving from its premises near the Red Cow Roundabout. He said the group was considering its options for its current headquarters where it displays some of its large machinery and equipment.