Company report: MacNaughton Blair
MacNaughton Blair, based in Belfast, is a wholly-owned subsidiary of the Grafton Group, registered in Dublin. The company supplies building materials and architectural ironmongery.
The synopsis of the accounts is based on the registered results for 2015 in which the results for 2014 have been amended in line with FRS 101. Consequently, the profit figures and statement of shareholders' funds for 2013 are not fully comparable with the later years.
The company report draws attention to the benefit from a steady recovery in the economy, linked to private sector employment increases, improved consumer confidence and increased business investment. However, the report also cautions that the recovery in construction activity has been fragile.
Emphasis is placed on the signs of a tentative recovery in housebuilding with an increased number of starts of new building although this level of activity was still less than one-third of the level before recession.
Consistent with improved state of trade, MacNaughton Blair enjoyed an increase of 5% in turnover, bringing it back to levels last reached in 2008. The company notes that the improved turnover combined with a successful improvement in cost efficiency helped to give a significant lift to operating profits, up by 70%, to reach over £5.2m and a parallel increase in pre-tax performance.
The company report registered a note of caution about prospects for 2016 referring to the weaker outlook for the global economy and the UK decision to leave the EU.