Builders’ merchants MacNaughton Blair made two acquisitions in Northern Ireland last year, its accounts have shown.
The business, which is part of Grafton Group plc and led by chief executive Karol McGuckin, bought Clady Timber in Portglenone for £2.35m in June.
One month later, it snapped up B McNamee in Strabane, though the purchase price of the business is not disclosed in the accounts for 2023.
MacNaughton Blair suppliers building materials, doors, floors, bathrooms and architectural ironmongery from 21 branches in Northern Ireland.
Its trading names include MacBlair, Doorways, Watershed, Woodfloor Warehouse and B McNamee in Strabane – which continues to trade under that name.
According to the accounts, turnover declined by 2.7% from £115.9m to £112.8m in 2023, while pre-tax profit decreased by 47% from £8.6m to £4.6m.
In a strategic report filed with the accounts, the directors said: “Following on from a softening market in 2022, trading conditions continued to be weak in 2023 in a competitive market not helped by deflation in timber and a difficult home improvement sector leading to reduced like for like revenue.
“These difficult trading conditions alongside general cost inflation led to reduced profitability.”
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But it said that the acquisitions of Clady Timber and B McNamee had extended the brand, and helped offset the reduction in like for like revenue.
And they said there was uncertainty ahead in 2024. “At the date of signing these accounts, the home improvement sector continues to be difficult and cost inflation continues to present a challenge.
“Whilst the local political administration is back up and running, it will take some time for any benefit to filter into the Northern Ireland economy.
“We expect 2024 to be a challenging year in both housing and home improvement sectors largely due to high interest rates and general cost of living.
“We therefore remain cautious on the outlook for the rest of the year. “
Karol McGuckin, chief executive of MacNaughton Blair
But it said the deal for Clady Timber and its location in the centre of Northern Ireland provided development opportunities and improvements in its distribution function.
And the deal for B McNamee strengthened the company’s branch network and geographical spread.
The report said the company was performing in line with expectations in 2024, with the directors hopeful that the general level of activity would remain consistent.
It added that the business “continued to monitor events relating to wider political/economic situation impacting the supply of product, costs and energy prices, which may have implications for the company’s business and markets”.
The company accounts said staff costs grew from £15.4m to £15.8m over the year, with employee numbers rising from 433 to 446.
They state that Clady Timber contributed revenues of £3.1m from the date of the acquisition to the year end, while B McNamee contributed revenues of £2.4m.