Pretax profits at DIY and builders' merchants group Dublin Providers Ltd (DPL) dropped sharply last year although it said increased construction sector activity helped boost sales.

Returns just filed show the company recorded a profit before tax of €213,129 for 2015, down 74 per cent versus the €823,251 reported a year earlier.

Turnover rose to €41.8 million compared to €40.9 million in 2014, while gross profit increased from €7.9 million to €8.1 million.

Founded in 1971, the Kilmainham-headquartered group, which supplies building materials, bathroom suites and accessories, operates ten branches across Ireland.

DPL was badly hit by the decline in building sector activity during the downturn with the company reporting a €2.3 million loss in 2013, almost twice that of the previous year, as it wrote down €900,000 in the value of stock.

In a note attached to its latest accounts, the Jeremiah Maher-led firm said turnover was aided by a recovery in the market.

“The results of the merchanting and DIY businesses for 2015 were influenced by the stabilisation in the construction sector during the year which was added to by the continued growth in the repair, maintenance and improvement and DIY markets,” it said.

DPL’s balance sheet remained strong. Net assets were €29 million on December 31st, unchanged from a year earlier.

The company employed 169 people at the end of the year with staff costs totalling €5.3 million. Directors received a total of €298,649 in 2015.

The accounts show a deferred tax asset of €1.2 million arising from losses carried forward from previous financial years.