Shannon aircraft business upbeat about prospects
Newly filed accounts for the company show that it generated pre-tax profits of €782,692 in the eight months following it exiting examinership in April last year.
The Shannon, Co Clarebased group was formerly known as Transaero Engineering.
It has generated revenues of €6.1m since April 2015 and, according to its directors, has replaced the business of its main customer, Transero, in a relatively short space of time.
The firm entered examinership in January of last year and exited three months later.
The company was owned by Russian group Transaero Airlines, which said in 2014 it was “fighting for its survival” due to sanctions on Russian businesses.
Transaero Engineering’s examinership showed Aer Lingus was one of the large creditors to take a hit from the rescue of the firm; receiving 5% of the €1.8m it was owed. A private investor and former director at Siteserv, Patrick Jordan, paid €2.5m to take over Transaero.
According to the directors’ report section of the new Atlantic Aviation Group accounts, since the successful exit from examinership, management has focused on stabilising the business by developing the revenue line and reducing costs.
Numbers employed by the company last year reduced from 235 to 217. A breakdown shows there were 146 employed as mechanics and apprentices and 71 in management and administration.
Staff costs for the eight months of last year came to €6.59m. The pre-tax profit took account of non-cash depreciation costs of €209,233. Compensation for key management personnel amounted to €203,220.
The latest pre-tax profit is sharply down on the €4m figure recorded in the previously reported 16-month period. However, that profit arose chiefly from exceptional gains of €3.7m from the examinership.
In the accounts, the directors say they are satisfied with the results for the year and the outlook is positive. The report said the company has been strengthened in operations, marketing, and human resources.
