MacNaughton Blair: Building materials giant makes two acquisitions in 2023

The company, part of Grafton Group plc and led by chairman Charles McGuckin, bought Clady Timber in Portglenone in June for £2.35m.

A month later, the company acquired B McNamee in Strabane, although the purchase price for the business was not disclosed in the 2023 accounts.

MacNaughton Blair supplies building materials, doors, flooring, bathrooms and architectural fittings from 21 sites across Northern Ireland.

The company’s trading names include MacBlair, Doorways, Watershed, Woodfloor Warehouse and B McNamee in Strabane – which still trades under that name.

Turnover fell 2.7% from £115.9m to £112.8m in 2023, while pre-tax profits fell 47% from £8.6m to £4.6m, according to the accounts.

In a strategic report filed with the accounts, the directors said: “Following the market weakness in 2022, trading conditions in 2023 continued to be weak in a competitive market, unsupported by deflation in the timber market and a challenging home improvement and fit-out sector, leading to lower like-for-like revenues.

“These difficult trading conditions, combined with general cost inflation, led to a decline in profitability.”

However, the company said the acquisitions of Clady Timber and B McNamee expanded the brand and helped offset the decline in comparable revenue.

They also said there was uncertainty in 2024. “At the time of signing these accounts, the renovation and fit-out sector remains struggling, with cost inflation continuing to pose a challenge.

“While local political administration is back up and running, it will take some time for any benefits to begin to flow through to the Northern Ireland economy.

“We expect 2024 to be a challenging year for both the residential construction and home improvement sectors, largely due to high interest rates and the overall cost of living.

“We therefore remain cautious about the outlook for the rest of the year.

However, the company said the Clady Timber contract and its location in central Northern Ireland provided opportunities to grow and streamline the company’s distribution functions.

The B. McNamee transaction strengthens the company’s network of branches and its geographic reach.

The report indicated that the company’s results in 2024 are in line with expectations, and directors hope that the overall level of activity will remain at the same level.

It added that the company “continues to monitor developments related to the broader political and economic situation that impacts product supplies, energy costs and prices, which could impact the company’s operations and markets.”

The company’s accounts show that over the year staff costs rose from £15.4m to £15.8m and the number of employees increased from 433 to 446.

They claim that Clady Timber generated revenues of £3.1m from the date of acquisition to the end of the year, while B McNamee generated revenues of £2.4m.