Mannok, a group specialising in cement, insulation and packaging, has confirmed that its CEO, Liam McCaffrey, will be stepping down from his position on the 30th of June. The company’s current CFO, Dara O’Reilly, will take up the mantle of CEO.
Previously, McCaffrey held a high-ranking position at Quinn Industrial Holdings (QIH), once under the ownership of Sean Quinn. Mannok Holdings is essentially comprised of several former Quinn enterprises, now renamed and with a fresh set of owners.
Post the financial crash of 2008, when Sean Quinn lost his business, former executives of Quinn faced sustained threats and violent incidents, focusing primarily in the Fermanagh-Cavan region. In 2020, Quinn expressed his disbelief at the renaming of his former enterprise to Mannok, questioning the authority of his ex-executives, McCaffrey, Kevin Lunney, and Dara O’Reilly, to alter the name of a business they only joined 25 years after its inception in 1973.
Last year, Mannok saw its earnings skyrocket by 74%, totalling close to €45 million, thanks to a decrease in inflation and rewarding carbon reduction initiatives. The company, based in Derrylin, Co Fermanagh, experienced a modest 1.8% decline in revenue to €311.9 million, predominantly due to a reduction in insulation and plastic packaging prices.
Brenda Rennick, the current financial director, will take over from O’Reilly, while McCaffrey will continue to serve as a non-executive director. The group reported that earnings before interest, tax and write-offs surged by 74% to €44.9 million, up from €25.8 million in 2023.
Mannok acknowledged the specific benefits of their past investments in carbon reduction, allowing for inflation to cool and margins to recover as cost absorption lessened. Considering the energy-intensive nature of its operations, Mannok places great importance on sustainable investment, for business and environmental gains alike.
The company operates quarries, producing cement, concrete, stone for building, insulation, and food industry packaging, predominantly sold in Ireland and the UK. Business operations span across both sides of the Irish border.
In March, the business successfully commissioned the completion of its Fuel Flex system, resulting in slashed coal usage. Further strategies to reduce fossil fuel usage are reportedly well underway.
Recently, Mannok Energy Valley project concluded its tendering process, set to embark on green hydrogen production, gradually phasing out diesel from its trucks’ fuel options. Furthermore, a pact was inked with Hydrogen Vehicle Systems, the pioneer of hydrogen fuel cell trucks in the UK, to investigate the integration of these trucks into their current fleet.
Justifying its aim to cease fossil fuel use, Mannok engaged multiple state agencies such as Enterprise Ireland in the Republic and InvestNI in the North. Assistance also came from both the Irish and UK government departments through several initiatives.
Last year, Mannok pumped €12 million into its businesses, raising the total capital expenditure since 2015 to a steep sum of over €100 million. The firm is charting similar expenditure levels for 2024. The previous year witnessed a 30% debt reduction, tapered down to €66.8 million.
Reporting on the financial outlook, Mr McCaffrey stated their satisfaction in witnessing margin recovery after backing their clients amidst several years of overbearing inflation. Mr O’Reilly observed a dip in insulation and plastic packagings costs in the past year, thanks to decreased costs.
He further anticipated a prolonged process of decarbonisation, viewed as a means to enhance margins and support the planned investment of several hundred million euros in the upcoming decade.