Glen Dimplex’s primary Irish division posted a pretax loss last year, as the heating and electrical goods manufacturer grappled with declining demand for heat pumps across Europe and initiated a sweeping transformation of its operations.
According to newly filed accounts from Glen Dimplex Europe Holdings, turnover fell by over 9% to €875.2 million for the 12 months ending September. The company also recorded restructuring expenses exceeding €26 million—more than double the €12.4 million reported the previous year. These costs are tied to its ongoing “transformation programme,” which includes streamlining its flame and consumer appliance segments, directors noted.
In February 2024, Glen Dimplex announced a significant overhaul of its Irish operations. As part of the changes, production of its gas and electric fire products will shift from its facility in Dunleer, Co Louth, to a manufacturing partner in China—bringing an end to the company’s production activities in the town.
The company has begun a consultation process with employees at the Dunleer site, where approximately 70 redundancies are being proposed.
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Glen Dimplex founder Martin Naughton’s son to become CEO
Glen Dimplex, the electrical goods company founded by Martin Naughton, has named one of the businessman’s sons as its next chief executive officer (CEO).
Fergal Naughton (49), who has been a director of Glen Dimplex for the past 18 years, according to Companies Registration Office (CRO) filings, will succeed Fergal Leamy from next month.
Glen Dimplex Home Appliances Appoints Peter Spencer as New Managing Director
Glen Dimplex Home Appliances (GDHA) has announced the appointment of Peter Spencer, former Managing Director of Electrolux UK, as its new Managing Director.
With an impressive track record in driving commercial success, Spencer has been recognised for his ability to forge strong customer partnerships, improve profitability, and enhance consumer experiences—qualities GDHA describes as essential to leading its brands and business forward.
Spencer’s extensive career includes his role as Managing Director for Electrolux UK, as well as serving as European Vice President of Aftermarket Services and European Vice President of Direct-to-Consumer.
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Glen Dimplex announces proposals which would close Whiston factory
Operations at the Stoney Lane factory will cease under proposals put forward by the company.
Glen Dimplex says it plans to relocate production following a “comprehensive review” was carried out to ensure a “sustainable future” for the business.
The firm says it has proposed “significant changes to our UK business operations”. If the proposals go ahead, production at the Whiston site will cease and the factory will close. spokesperson for Glen Dimplex Home Appliances said: “We have had to make a difficult announcement to our staff and key stakeholders about our Prescot plant.
“Our proposals to relocate production come after a comprehensive review and are aimed at ensuring a sustainable future for the businessThis includes a proposal to relocate all production to leading international partners to leverage economies of scale and access latest technologies.
“If the proposals proceed, production at our Prescot manufacturing facility would cease, leading to the eventual closure of the site.”As well as being our manufacturing base for Lec Medical refrigeration products and Belling and Stoves cooking appliances, on-site departments at Prescot include payroll, supply chain, technical, administrative and support staff.
“As part of our strategy to lead the UK market we also plan to enhance our customer service offering, taking advantage of the latest consumer engagement technologies and extending field service coverage. We are in discussions with leading UK players in this area to establish the best solution for the business.
“In addition, we propose to simplify the organisational structure of our support functions to align with our revised operating model, and remaining staff would move to a new office facility in the area.
“Regrettably the proposal may lead to redundancies across affected functions. Our immediate priority and focus is our duty of care to colleagues whose roles cannot be moved to other UK businesses within the group and we will be doing everything we can to support them during this time.”
Glen Dimplex Heating & Ventilation (GDHV) and RKW Ltd announce agreement transfer of Redring and Burco water heating brand
Glen Dimplex Heating & Ventilation, a leader in electrical HVAC solutions, and RKW, a leading European distributor and manufacturer of domestic appliances, are pleased to announce an agreement that will see the transfer of the renowned water heating brands, Redring and Burco.
This agreement aligns to both company’s strategies with GDHV’s ongoing commitment to focussing on their portfolio of brands and technologies in the electric heating and ventilation categories, and RKW’s continued expansion plan into new product categories that complement core operations.
Ian Stuhldreer, Interim Commercial Director for GDHV says “We believe that this transition will enable new opportunities for growth in GDHV’s core categories, and we are confident that under RKW’s stewardship Burco and Redring will continue to evolve while maintaining the high standards of quality and innovation that have become synonymous with these brands. I would like to take this opportunity to express my sincere gratitude to our customers for supporting these brands whilst they were part of the GDHV family.”
For RKW, the agreement comes at an exciting time as the business continues to grow.
Rob Sutton Managing Director of RKW says “We are delighted to welcome Redring and Burco to RKW’s stable of leading brands. We feel privileged to be taking over recognised leading brands with real heritage in their respective markets.”
“RKW has a talented team with a proven track record of brand building. Our team will ensure the high service levels established by GDHV are maintained as we look to grow the brands and product ranges. We look forward to working with customers who have loyally supported Redring and Burco in recent years.”
Please note that Glen Dimplex Ireland have a distribution agreement in place with RKW to continue to sell product on the Island of Ireland.
Glen Dimplex profit increase
The main business of Glen Dimplex, the Irish-headquartered heating, cooling and appliance giant, nearly quadrupled its profits last year as the company substantially concluded a period of restructuring.
Newly filed accounts for Glen Dimplex European Holdings, which makes up about 60pc of group operations, showed the business made a profit of €42.8m in the year to September 30, 2022, up from just €11m in the previous year.
Glen Dimplex increased turnover by just 4pc in the period to €944m, with growth coming mainly from the group’s energy efficient heating and ventilation products, which are in high demand in the EU because of public policy initiatives.
“Encouragingly, the strong profit growth experienced in the 2021/22 financial year has continued into the early part of the 2022/23 financial year and the outlook remains positive driven by strong underlying demand trends, a supportive policy environment and fiscal supports for end users,” the accounts stated.The company, which is owned by the Louth-based Naughton family, has been undergoing a transformation in recent years to focus more on sustainability and the electrification of energy, increasingly via smart tech.The firm sold the well-known consumer appliance business Morphy Richards to long-term Chinese manufacturing partner Xinbao for €185m. Glen Dimplex retained the rights to distribute the brand in Ireland, New Zealand and Australia for 10 years as part of the deal.The shift has seen Glen Dimplex become very busy in terms of mergers, acquisitions and disposals, with the company an active buyer of heating and ventilation businesses
Glen Dimplex turnover increase
Revenues at Glen Dimplex electrical group have started to rebound quickly, according to accounts for one of the main cogs in the group.
Dublin-registered Glen Dimplex Europe Holdings, which captures the majority of the group’s global business, recorded a 17 per cent rise in turnover last year to more than €930 million,
The accounts, which cover the 12 months to the end of last September, show a return to profit after losses incurred at the height of the pandemic.
The unit recorded an operating profit of €16.3 million, compared with an operating loss of €10.2 million the prior year. After adjustments, the profit before tax was €11 million, compared with a loss of €42.6 million in 2020.
A note by the directors, who include chief executive Fergal Leamy, attributes the financial turnaround to Glen Dimplex reaping the fruits of a €180 million investment and restructuring programme.
The company is retooling its operations to seek growth primarily in the heating and ventilation and flame divisions. The flame division includes decorative fake fires that sit in hearths.
The directors highlighted that they expect growth in future to be driven by Government grants for less environmentally damaging heating systems. It said last year’s growth had continued into 2022.
Glen Dimplex Europe Holdings invested more than €29 million in research and development last year, the accounts suggest. It employed close to 4,400 staff. Covid wage subsidies received fell to €1 million from €8 million.
The management team at the business shared a pay pot of €7.4 million, up from €6.6 million. A Naughton family-controlled entity in the Isle of Man that owns the business was paid dividends of €2.45 million, while €2.5 million was paid to the Naughton Foundation, a charity established by the company’s founder, industrialist Martin Naughton.
Glen Dimplex, which also operates a consumer appliances division, recently agreed to sell its Morphy Richards home appliances brand to a Chinese company, in a deal believed to be worth between €175 million and €200 million
Glen Dimplex
Glen Dimplex launch a brand-new Group website https://www.glendimplex.com/en-ie
The site has been developed in collaboration with colleagues across all their international businesses to tell the company story, share Purpose, and to bring to life our mission to empower the everyday lives of their customers.
Watch the new Glen Dimplex Group film on the homepage to learn more about our incredible history and exciting future.
Glen Dimplex to sell Morphy Richards in deal worth up to €200m
Glen Dimplex, the electrical company owned by the Louth-based Naughton family, has agreed to sell its Morphy Richards home appliances brand in a deal believed to be worth between €175 million and €200 million.
The brand is to be bought by stock market-listed Chinese company Guangdong Xinbao Electrical Appliance Holdings (Xinbao), which trades under the brand Donlim. The transaction is subject to Chinese government approval, and it is expected to close by the end of the year, staff at Glen Dimplex were told.
Morphy Richards is a British brand that was acquired by Glen Dimplex founder and industrialist Martin Naughton in the mid-80s. Its toasters, kettles and other home appliances are sold in China, Ireland, the UK, Australia and New Zealand, with worldwide retail sales estimated at more than €350 million.
Xinbao, which already manufactures Morphy Richards products in China for Glen Dimplex, is buying the brand globally, but initially it will take full control only of the Chinese and British operations – Glen Dimplex will keep rights to distribute the brand under licence in Ireland, Australia and New Zealand for “at least” 10 years.Glen Dimplex staff were told of the deal on Wednesday in an email from Fergal Leamy, the chief executive of the Glen Dimplex group. He said the Irish company decided to sell after it received an approach from the Chinese buyer.
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