The profit before tax of Michael Cotter’s enterprise, Park Developments, saw a surge of close to 33% to a sum of €23.45 million in the preceding year. This growth comes despite a 12.5% fall in yearly revenues till June 29th, counterbalanced by a decrease in expenses. The enterprise marked a net profit margin near the 10% mark, a significant rise from the earlier year’s 6.4% margin. This was regardless of the inflation in costs and heightened interest rates in the building industry as mentioned by the Park Developments (Dublin) Ltd executives.
The decrease in commercial contracting contributed to the reduced revenues, with revenue dropping by 38% to €44.57 million. The overall sales of the company were reported at €222.14 million, a dip from the €254.4 million. Residential contract work, contributing to nearly 80% of the preceding year’s business, experienced a slight 2.6% decrease in revenue to €177.56 million. Moreover, an additional €9m of income derived mainly from a management charge of €8.87 million.
The family-owned enterprise, operational since 1962, claims to have constructed in excess of 20,000 residential units around Dublin, including recent projects like Clay Farm located in the southern part of Dublin and Hanover Quay.
The staff count last year remained consistent at 74, with an increase in staff costs to €9.33 million, up from €8.7 million. The 74-member team comprised 46 production staff, 16 administrative staff, and 12 in management. The remuneration for the eight directors grew by 16% to €2.36 million, which included €2.28 million in pay and €86,417 in pension contributions.
The value of the building endeavours in progress, including construction work, development land, and buildings, surged from €43.54 million to €69.83 million. According to an attached note on company’s records, the business is a part of the Gansu Group, which is financed by Allied Irish Bank Plc and Bank of Ireland.
The statement indicates that the company successfully managed all loan payments for the entire year. The board of directors maintains confidence in the organisation’s capacity to handle business operations and settle its financial obligations as they arise, encompassing the payment of interest on all external banking services held by the group. By June 2023’s close, the company possessed shareholder assets amounting to €159.48 million, with accrued profits contributing €151.48 million of this total.