Glen Dimplex's billionaire founder: 'Business has been my life and my hobby'
Louth native Martin Naughton recently announced he was leaving the company he built for 40 years.
BILLIONAIRE GLEN DIMPLEX founder Martin Naughton says work “is his life” and that despite building a global manufacturing empire he remains a small businessman at heart.
The 77-year-old is one of Ireland’s most successful businessmen and the founder of Glen Dimplex, which started out as a seven-man operation in County Down before becoming the world’s largest electrical-heating business.
The Louth native also said that the company is still very much in growth mode and is eyeing at least five acquisitions in the range of between €15 million and €50 million.
Naughton, who is estimated to be worth well north of €1 billion, announced in April that he is planning to step down as president of Glen Dimplex after 40 years building up the firm.
His two sons will take up senior roles at the business, with its current chief executive Sean O’Driscoll moving to the position of chairman. Fergal Naughton will take up the reins as CEO, while his older brother Neil will become deputy chairman.
Glen Dimplex chief executive Sean O'Driscoll
Keeping it in the family
Speaking at the annual ISME business lunch yesterday, Naughton said it is crucial to make sure that everyone is on the same page when planning to keep a company in the family.
“Within the family there are always two conditions for joining the business. Number one you must want to do it, and number two, be able to do it,” he said.
“If those two conditions are not there it’s no good for them and it’s no good for the business – let them go and do whatever else they want to do.
“I love business, it’s been my life, it’s been my hobby. I’m a small businessperson – always have been in my heart, irrespective of the numbers.”
Glen Dimplex founder Martin Naughton
Naughton also reiterated his key business rules, which included making sure to always “play fair” and to “focus on the bottom line”.
“Your handshake or your word is a contract. Integrity in business really is the only way,” he said.
“Turnover is vanity, profit is sanity. Stay nervous and irrespective of how good your performance is, it’s never quite good enough. Never be satisfied (and) always remain worried.”
A Glen Dimplex stove
Making deals
Naughton revealed Glen Dimplex has several major deals in the pipeline, including two company buyouts this year.
“We have five others at the moment in various stages of negotiations … all nice bolt-on businesses with good management teams who are happy for them to join the group,” he said.
The company’s unlimited, private ownership structure means it is difficult to gauge its exact size as the firm isn’t required to file publicly accessible accounts.
However its Northern Irish subsidiary, Glen Electric, which represents almost half of the business, had sales of over €1 billion and profits of €87 million in 2014. Earlier this year the Sunday Independent estimated Naughton was personally worth €1.5 billion.
