Amalgamated Hardware, the hardware buying group that trades as Topline, will have a turnover of close to €200 million this year, according to managing director Pat Byrne. Colm Keenareports.
The group has increased its turnover by more than 23 per cent per annum over the past 10 years, Mr Byrne said, while membership has increased to 102.
The accounts for the group for the year to the end of June 2005, which are the latest on file, show turnover at €155 million and pretax profits at €2.8 million. The accumulated profits at the end of the year were €13.6 million.
Amalgamated Hardware sources and buys product for its members, which are independent retailers around Ireland. It has nine ordinary shareholders and a further 90 holders of non-cumulative redeemable preference shares.
Based in Naas, Co Kildare, the business was established in 1972 to assist large to medium-sized independent outlets to compete with larger multiples.
As well as using group weight in purchasing, the business also provides support in areas such as advertising, store design, product presentation and selling techniques. An online ordering and product information service is being developed.
The housing market has been driving the group's turnover in recent years, according to Mr Byrne.
"The hardware sector overall is currently one of the most dynamic in a buoyant Irish economy and continues to benefit from resilience in residential construction output, as well as a growing national appetite for home improvement."
Mr Byrne said national buying groups played a critical role in maintaining a vibrant independent sector. Profits from the business were reinvested to finance future expansion and additional services to members.
Amalgamated Hardware employed 35 people, including executive directors, during the year to the end of June 2005, at a cost of €2 million, according to the accounts. Directors' remuneration, including pension contributions, was €593,378.
During the year, the company had transactions with entities controlled by directors totalling €27.3 million. It purchased goods worth €1.1 million from an entity controlled by one director, the accounts state.
The company had 10 directors during the year to June 2005. One of the directors, Anthony Fogarty, from Abbeylands, Arklow, Co Wexford, is the owner of hardware company P Boland Ltd, of Main Street, Arklow, which holds ordinary shares in Amalgamated Hardware.
Earlier this week Mr Fogarty appeared on the latest tax defaulters' list. He was listed as making a settlement of €2.75 million, while his company made a settlement of €2.25 million.
