Business

Sales soar but profits slip back at aviation supply firm Mallaghan

Mallaghan chief executive Ronan Mallaghan (right) with Invest NI chief executive Alastair Hamilton at an announcement last year of a multi-million pound investment by the Dungannon company
Mallaghan chief executive Ronan Mallaghan (right) with Invest NI chief executive Alastair Hamilton at an announcement last year of a multi-million pound investment by the Dungannon company Mallaghan chief executive Ronan Mallaghan (right) with Invest NI chief executive Alastair Hamilton at an announcement last year of a multi-million pound investment by the Dungannon company

A MULTI-million pound investment to develop a new type of airport bus and to further expand the business has impacted slightly on the bottom line at Tyrone aviation specialists Mallaghan.

But the company, which is among the world's fastest-growing airport ground support equipment manufacturers, continues to be one of the north's engineering high-flyers, and is on target to grow its workforce to nearly 400 by the end of next year.

According to figures just filed with Companies House, Mallaghan Holdings Ltd grew its turnover to £55.5 million last year (up from £47.1m previously), though its retained profit slipped back from £3.2m to £2.8m.

However the directors, led by chief executive Ronan Mallaghan, said they were "satisfied" with the underlying performance of the group and its year-end position.

Mallaghan, originally established as a civil engineering firm in the 1960s by Terry Mallaghan, manufactures ground support equipment such as baggage conveyors and stairs for commercial aircraft.

Its principal products include high lift trucks for catering, cabin cleaning and facilitating restricted movement passengers as well as de-icing rigs, water and waste trucks, baggage conveyors and various forms of passenger stairs.

Mallaghan works with some of the biggest companies in the global aviation industry including Etihad, Qatar, Qantas and British Airways.

Based on the Coalisland Road in Dungannon and with satellite officers in London, Berlin, Dubai, Singapore, Shanghai and the US, the company is currently developing an airport bus and is actively pursuing opportunities for its products in the US and China.

Midway through its last trading year Mallaghan confirmed the multi-million pound expansion (backed by £3m from Invest NI) designed to help secure the future growth of the business.

That move was predicted to double job numbers over three years, and according to latest accounts, its payroll has already jumped from 210 staff to 290 (65 new recruits are in production with a further 15 in administration).

That pushed up its wages bill from just shy of £8m in 2017 to more than £9.5m last year, with its directors accounting for more than £1m of that (the highest paid of its bosses had his salary boosted from £238,453 to £269,354).