THE CONSTRUCTION slowdown left profits at builders' supplies and DIY group Dublin Providers Ltd (DPL) trailing by 57 per cent at €2.7 million last year, the latest figures show.
DPL's returns for 2007 show that sales dropped by about 8 per cent to €98.7 million from €107.2 million the previous year. The group's costs remained largely the same as the previous year, leaving it with operating profits of €2.7 million in 2007 compared with €5.7 million in 2006 - a fall of 56 per cent.
Directors Jeremiah Maher and Noel Keogh said in their report for the year that the fall in house building "influenced" the group's results for the year. They added that a good performance in DIY, repair, maintenance and improvement helped offset this.
Part of DPL's strategy is to expand by buying up smaller rivals. The directors said they could not control the pace of this activity but acknowledged that the company has a reasonably healthy pipeline of opportunities.
During 2007, the group incurred a €14,380 once-off loss on the sale of assets and paid over €388,000 in interest and charges to its banks.
DPL ended last year with profit-before-tax of €2.3 million, less than half the €5.3 million pretax surplus it reported for 2006.
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.
DPL has been in business for 37 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.
In 2005, it bought out smaller competitor Oliver Brennan in Mullingar, Co Westmeath, for €9 million. It also has a 25 per cent holding in developer Timoney Properties Ltd and had investments worth over €145,000 in companies quoted on the Irish Stock Exchange.
The net book value of its land and buildings comes to more than €27 million. The figures show its balance sheet was healthy at the end of last year. The shareholders' fund stood at €50.2 million, up from €48.2 million 12 months earlier.
The group employed a total of 364 people in 2007. The majority of them - 253 - were sales staff.
Its bill for wages, pension and social security came to €12.2 million in 2007, compared with €12 million in 2006, when it employed 352 people.
The group operates a defined-contribution pension scheme for its workers.
