Glen Dimplex unit looks to manage Covid risk as profits hit €6.2m

A SUBSIDIARY of Irish-owned appliance giant Glen Dimplex last year recorded pre-tax profits of £5.59m (€6.2m).

New accounts filed by Glen Dimplex UK Ltd show that the company generated revenues of £150.9m in the 12 months to the end of September 2019.

The profits and revenues are lower than the pre-tax profits of £7.5m and revenues of £176m recorded in the firm’s prior-year returns, because those covered an 18-month trading period.

The principal activity of the company is the distribution of domestic electrical and gas heating appliances.

Some of its best-known brands are Belling, Nobo, Stoves, Valor, Roberts and Morphy Richards.

Employee numbers fell from 680 to 620. Staff costs last year totalled £28.7m.

The directors are Glen Dimplex founder Martin Naughton, chief executive Fergal Naughton, Donal Flynn and Neil Stewart. The highest paid un-named director was paid £292,000.

Accounts show that £123.13m was generated in the UK, £23.16m in Europe and £4.6m in the rest of the world.

On the impact of Covid-19, a note states that “due to the uncertainty of the outcome of the current events, the company cannot reasonably estimate the impact these events will have on the company’s financial position, results of operations or cash flows in the future”.

The directors state that the company has considerable financial resources available to it, and benefits from its long-term relationships with customers and suppliers.

They state that as a result, they believe that the company will be able to manage the risk posed by Covid-19 by undertaking actions such as controlling its costs.

At the end of September, the company had €74m in shareholder funds made up of accumulated profits of €54m and a capital contribution of €20m.

The company’s cash funds reduced from £55.9m to £39.9m.

Its spending on research and development last year totalled £4.2m compared to £6m in 2018.

Selling, marketing and distribution costs totalled £17.8m and administrative expenses amounted to £11.04m.

The company also incurred restructuring costs of £970,000, down from the £2.17m restructuring charge it listed in 2018.

A breakdown of the numbers employed show that 282 were engaged in production, 204 in selling and distribution, 99 in administration and 35 in research.