Pretax profits at the main Irish unit of electrical goods company Glen Dimplex, which is owned by the Louth-based Naughton family, increased nearly threefold last year €120.93 million.
Accounts filed by Glen Dimplex Europe Holdings Ltd show the business enjoyed a boost in profits as revenue rose by 2 per cent from €944.03 million to €962.7 million in the 12 months to the end of September last.
The 182 per cent increase in profits coincided with Glen Dimplex accruing €185 million from the sale of its global brand rights for Morphy Richards home appliances to a Chinese group, Guangdong Xinbao Electrical Appliance Holdings (Xinbao).
Morphy Richards is a British brand that was acquired by Glen Dimplex founder and industrialist Martin Naughton in the mid-1980s.
The recent deal saw Glen Dimplex keep rights to distribute the brand for the Chinese company under licence in Ireland, Australia and New Zealand for at least 10 years.
Numbers employed across Glen Dimplex Europe Holdings last year increased by 204 to 4,595 as staff costs climbed to €253.9 million from €248.4 million. The group’s research and development spend totalled €30.8 million.
The €170.69 million gain on the sale of intangible assets – those Morphy Richards brand rights – was the chief factor behind the sharp jump in profits.
It was partially offset by restructuring costs of €12.37 million, a non-cash asset impairment of €28.7 million, €10.8 million donated for educational purposes, €8.5 million in closure costs and “other” costs of €534,000, resulting in a net gain on the group’s profit and loss account of €109.72 million.
In a note to the accounts, the directors said “our strategic focus and cost discipline has enabled strong year-on-year performance, and continuing progress in delivering on our long-term ambitions”.
They said the increase in turnover had been driven by strong growth in a number of categories “and a tapering of sales in some more traditional areas of activity”.
“Both the heating and ventilation and precision cooling divisions saw good momentum, mainly focused on EU markets where sustainability remains a priority. This growth was partly offset by weak economic activity in the UK which contributed to continued softness in our UK consumer appliance and flame businesses,” it added.
The group was busy on the acquisition trail last year and that has continued into the current year. In March 2023, Glen Dimplex purchased Adax AS, a leading Norwegian supplier and manufacturer of eco-friendly electrical heating and drying appliances to household and trade in Scandinavia and Europe for €44.7 million.
More recently, in February, the group announced a €50 million investment and reorganisation of its Irish operations as it positions for growth.
Last year, dividends of €3.8 million were paid out. Accumulated profits at the end of September last totalled €402 million with cash funds amounting to €271.57 million.
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