Belfast Telegraph

McAvoy pre-tax profits improve

By John Simpson

The McAvoy Group, headquartered in Dungannon, specialises in the manufacture, hire and sale of mobile buildings.

The group enjoyed increases in annual turnover in the years leading up to 2007.

Then, in 2008 and 2009, annual turnover fell appreciably from £27m to just over £15m. Since 2009, annual turnover has again improved steadily and has recovered to exceed the previous best year, 2005.

In a turnover of over £29m in 2012, £3.4m was the addition from the joint venture supported by the group.

The fluctuations in turnover have had an impact on profitability. Operating profits recovered in 2012 but were still well below the results five years ago. In 2012, operating profits were less than 3% of turnover before taking account of an exceptional write-back of an impairment charge of £195,000.

Pre-tax profits in 2012 also improved. A combination of a positive recovery in operating profits and a fall in net interest charges, together with a significant reversal of an impairment charge, created a pre-tax profit of £195,000.

The number of people employed in the group has varied as turnover has changed. Average employment in 2007 was 246 people.

This total fell in each year after 2007 until 2011 when only 119 people were working for the firm. Now, in 2012, the numbers have increased slightly to an average of 131 people.

The financing of the business has been assisted with funds borrowed from Danske Bank. However, in 2012, McAvoy group has managed to reduce its borrowing by about £7m.

The group has continued a notable capital expenditure programme of more than £1.2m in each recent year. This compares with depreciation allowances of nearly £2.2m.

The balance sheet value of shareholders' funds rose by 2% in December 2012. This reflected the impact of a small post-tax gain added to the reserves. No dividends have been paid since 2008.

Belfast Telegraph