Pre-tax profits at the expanding timber processing group, Glennon Brothers increased by 26.5% to €48.24m in 2022.
Recently filed consolidated accounts filed by the Co Longford based third generation timber processing business, Glennon Bros Holdings Ltd show the business enjoyed the surge in profits after revenues increased by €129.3m or 52% from €251.7m to €381.1m in 2022.
The massive leap in revenues and profits at the group followed Glennon Brothers purchasing rival, the Co Fermanagh based Balcas from owner, SHV Energy in a deal completed in October 2021.
Numbers employed at the combined business increased from 595 to 890 in 2022 as staff costs increased from €24.59m to €41.86m. The workforce was made up of 691 in production, 110 in selling and distribution and 89 in administration.
Pay to key management personnel totalled €1.22m in 2022 made up of emoluments of €928,830 and pension contributions of €293,147.
The group - which are long-time main sponsors of Longford GAA - recorded post tax profits of €37.68m after incurring a corporation tax charge of of €10.56m.
The group sells timber in Ireland, the UK and mainland Europe while it is also active in the generation of electricity from renewable sources and sale thereof in the UK.
The directors, Mike Glennon, Patrick Glennon and William Glennon said that in the prior year, the business completed the purchase of Balcas "in line with its growth strategy"
The Glennon directors said that they "are pleased with the integration of the business within the group" and are "satisfied with the performance of the group for the year".
No dividends were paid out in 2022 or in 2021.
On the business's future developments, the directors state that "the Group plans to continue its policy of developing added value products and of pursuing its sales efforts in new and existing markets".
During 2022, the business received 'other operating income' of €3.45m made up of €3.17m in UK Government incentives relating to income earned under the Renewable Heat Incentive (RHI) regime and rental income of €269,000.
The profits in 2022 take account of non-cash depreciation charges more than doubling to €20.4m and non-cash amortisation of intangible assets charges of €1m.
The profits for 2022 further bolstered the group’s balance as accumulated profits increased to €168.69m. The group’s cash increased from €65.84m to €95.32m.
Underlining the group’s continuing expansion, the accounts state that there was capital expenditure of €28m approved by the directors at the end of December 2022.
The accounts show that in 2021, the group spent €35.5m on the purchase of a subsidiary while in 2022 a further €24.4m was spent on the purchase of tangible fixed assets.
Reporting by Gordon Deegan
