Profits at Newry-based Glen Electric rose by 12% last year to €85 million

PROFITS AT Glen Electric, the Northern Ireland-based division of Glen Dimplex, rose by 12 per cent last year to just over £74 million (€85 million), according to the company’s 2011 accounts.

Turnover at the Newry-based heating and electrical appliance company, which is believed to account for around half of Glen Dimplex’s overall turnover, rose by 2 per cent to just under £839 million in the year to March 31st. This compares to turnover of £823 million the previous year.

Pretax profits in 2010 were £66.3 million.

Glen Electric has 22 subsidiary companies which operate in Europe, North America, New Zealand and Japan, according to the accounts. Its parent company, Glen Dimplex, has unlimited status and is not required to file public accounts.

Louth native Martin Naughton founded Glen Electric in 1973, acquiring Glen Dimplex four years later. Today it is one of the largest manufacturers of electrical heating equipment in the world, selling equipment under the Dimplex, Morphy Richards and Belling brands.

It is also one of the largest privately owned companies in Ireland. Naughton bought long-time business partner Lochlann Quinn’s 26 per cent shareholding in the company in 2004.

According to the accounts for Glen Electric, the company employed 5,211 people during the year, broadly in line with the figure for 2010. Total remuneration was just under £192 million compared to £187.8 million the previous year.

The highest paid director received emoluments of £462,000 in 2011, compared to £481,000 the previous year.

Sales to the European Union accounted for 75 per cent of the company’s overall turnover, with sales to North America accounting for 10 per cent.

The company posted an operating profit of just over £80 million, a 10 per cent increase on the £72.7 million posted the previous year.

The accounts show the company’s cost of sales increased slightly from £539.5 million in 2010 to just under £550 million.

The company had net assets of £309.4 million at the end of March 2011, compared to £262.4 million at the end of 2010. Some £181.5 million of this was cash, the balance sheet shows.

Dividends of £13.5 million were paid during the year, compared to £3.9 million in 2010.

Glen Electric distributed dividends of £11.6 million in the 2009 fiscal year.

Shareholders funds stood at £267 million at the end of the year, compared to £223 million at the end of 2010.