Profits surge to €23m at Cotter-led Park Developments

New accounts show Park Developments (Dublin) Ltd recorded the increase in profits as revenues decreased by 12.5pc from €254.39m to €222.14m in the 12 months to the end of June 29th last.

The increase in profits came despite the directors stating that “over the past two years, the group’s net margin has been impacted as a result of cost inflation and interest rate increases experienced by the construction sector”.

The family owned business operating since 1962 has constructed more than 13,500 homes in that time and its schemes include East Village at Clay Farm in south Dublin and Woodward Square at Leopardstown in Dublin 18.

The group’s residential contract work was its best performing sector in 2023 totalling €177.56m equating to 80pc of revenues while commercial contract work totalled €44.57m.

The company also received other operating income of €9m that was mainly made up of a management charge of €8.87m.

Numbers directly employed by the business last year decreased by just one from 75 to 74 from as staff costs rose from €8.7m to €9.33m.

The staff costs included redundancy costs of €95,747.

The breakdown of those employed show that 46 are employed in production; 16 in administration and 12 in management.

Pay to eight directors increased by 16pc to €2.36m made up of €2.28m in emoluments and €86,417 in pension contributions.

The group incurred a corporation tax charge of €1.61m resulting in a post tax profit of €21.83m.

Based on the 12.5pc corporation tax rate, the group was liable for corporation tax charge of €2.9m. However, the group was able to reduce the tax charge to €1.6m due in part to €373,283 in over-provided tax in prior years and €1.44m through the utilisation of loss relief. The value of the group’s construction Work In Progress (WIP) and development land and buildings last year increased from €43.54m to €69.83m.

A note attached to the accounts state that the value of the WIP and development land at June 29th 2023 has been arrived through in part eternal valuation and in part through director assessment of the valuation.

At the end of June 2023, the firm had shareholder funds of €159.48m that included accumulated profits of €151.48m.