Heiton Holdings plc has enjoyed another buoyant year with group turnover growth of 15.8% – but chairman Richard Keatinge has warned of a pending slowdown.
Speaking at the group’s AGM in Dublin last week Mr Keatinge reported that group turnover had risen to €369.2m and profits before taxation and exceptional items were up 13.2% to €22.2m.
He said the strong results ensured that compound growth of EPS before goodwill and exceptional items had reached 26.5% annually since 1996.
The group has seen operating profits growth in all its Irish operations, but performance in the UK was affected by difficult trading conditions within the construction industry during the year.
However, said Mr Keatinge, current conditions in various markets were less favourable than in recent years, manifesting themselves in tighter net margins resulting from upward cost pressures.
He added: ‘To counter these trends we are actively pursuing programmes to reduce the cost base and contain investment programmes to those which will maximise incremental revenues or drive out costs.’
Group communications director Eddie Kelly said 35% of the company’s turnover was timber, adding: ‘It is an important part of our business. We deal in softwoods, hardwoods and sheet materials and we trade at different levels.
‘We act as a conventional softwood merchant, supply hardwood to the joinery sector and have our own Panel Centres.
‘The forest products business generally in Ireland and Europe is having a difficult time in some areas but, because we are spread through various sectors, we haven’t suffered to a great degree.
‘If we were solely concentrated in the volume softwood business we would find the going a bit tough, but because the business is spread we have been insulated,’ said Mr Kelly.
