Michael Cotter’s Park Developments had a 32% increase in pre-tax profits last year, reaching €23.45 million. Park Developments (Dublin) Ltd. reported higher earnings in the most recent financial statements, despite a 12.5 percent decline in revenue from €254.39 million to €222.14 million in the year ending June 29. Even though the directors said that “the group’s net margin has been impacted as a result of cost inflation and interest rate increases experienced by the construction sector over the past two years,” the earnings increased.
Since its founding in 1962, the family-run company has built over 13,500 homes. Two of its projects, East Village at Clay Farm in south Dublin and Woodward Square in Leopardstown in Dublin 18, are located in the city.
The group’s best-performing segment in 2023 was residential contract work, which brought in €177.56 million, or 80% of total revenues, while commercial contract work brought in €44.57 million.
Additionally, the business earned €9 million in other operating income, the majority of which came from a €8.87 million management charge. Just one person was directly employed by the company last year, down from 75 to 74, despite an increase in labor costs from €8.7 million to €9.33 million.
€95,747 in redundancy expenses were included in the staff costs. 46 people are working in production, 16 in administration, and 12 in management, according to the breakdown of those in employment. At €2.36 million, pay for eight directors grew by 16 percent, consisting of €86,417 in pension contributions and €2.28 million in emoluments.
The company had a profit after taxes of €21.83 million after paying a corporate tax charge of €1.61 million. The group owed €2.9 million in corporate tax at the 12.5 percent corporation tax rate. But thanks in part to €1.44 million in loss relief and €373,283 in over-provided tax in previous years, the business was able to lower the tax penalty to €1.6 million. Last year, the group’s development land and buildings, as well as its work-in-progress (WIP) in construction, saw a rise in value from €43.54 million to €69.83 million.
The WIP and development land’s June 29, 2023, value was determined in part by director appraisal of the valuation and in part by eternal valuation, according to a note attached to the accounts.
The company had €159.48 million in shareholder money at the end of June 2023, which includes €151.48 million in cumulative profits.
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