McMahon's sales halved to €77.2m
Published: 11 November, 2010
LIMERICK: The holding company behind McMahon timber importing and building materials firm has revealed the stark impact of the downturn with turnover almost halving last year to €77.2m.
Derevoya Holdings narrowed its operating loss to €4.2m from €7.8m in 2008 with its pre-tax loss widening to €6.6m last year from €4.6m in the previous 12 months after gains on disposals were not repeated.
The McMahon family controls Derevoya, the holding company, and the business traces its roots back to the early 19th century. The majority of the financial statements relate to the building materials operations but also include some input from investment holdings.
The collapse in turnover relative to that recorded in the heady days of the boom, when revenue hit €189m in 2007 and profits totalled €10.2m, is a stark reminder of the group's exposure to the property sector. However, the group notes that it has been actively tackling its costs in light of the downturn.
"The group continues to apply a strict control on operating costs and expects a further improvement in performance in 2010," the company said.
The McMahon group operates 13 outlets in Ireland, including four in the North. It reduced its workforce from almost 400 to 254 at the end of last year.
The accounts note that the group had net debt of €70.3m at the end of 2009.