DPL loses €380,000 as recession and building slowdown begins to bite

BUILDERS’ MERCHANT and DIY group Dublin Providers Ltd (DPL) lost over €380,000 last year as the recession and building slowdown began to bite.

DPL’s recently filed returns for 2008 show that sales dropped by about 20 per cent to €78 million from €98.7 million the previous year.

The group’s costs fell to €61.7 million from €78 million, leaving it with an operating loss of €12,000 in 2008 compared with a gain of €2.7 million in 2007.

An interest bill of €373,000 on its bank loans left the company with losses before tax of €385,000 in 2008, compared with a pretax profit of €2.3 million in 2007.

The group recorded a €428,000 loss for the financial year after paying almost €43,000 in taxes.

Directors Jeremiah Maher and Noel Keogh say in their report accompanying the accounts that the decline in new housebuilding during the year influenced the results for its merchanting and DIY businesses.

They add that growth in the repair, maintenance and improvement markets helped offset the impact of this decline.

The directors point out that their policy is to grow the business through acquisition and new development, and add that they will continue with this approach as long as suitable opportunities arise.

Mr Maher is the majority shareholder in the group, with just over 51 per cent of the issued share capital. His colleague, Mr Keogh, has a small stake in the business. A number of Maher family members are on the board.

Headquartered at Kilmainham, Dublin, DPL has been in business for 38 years and has 10 branches around the country.

It is based in Dublin, but has operations in Cork, Galway, Mullingar and Tralee, and in the southeast and northeast.

The accounts show that the value of shares held by the group in quoted companies fell by over 90 per cent last year to €14,000 from €146,000 at the end of 2007.

Its balance sheet shows that the company ended the year in good shape. The value of its land, buildings and other assets increased to €44.4 million at its balance sheet date of December 31st, 2008, from €35.6 million a year previously. The notes to the accounts state that these figures were obtained from independent valuations. DPL’s net assets grew 16 per cent to €58.5 million at the end of 2008 from €50.2 million a year earlier.