EI Company profits double for 2004

THE EI Company, a Shannon-based manufacturer of smoke alarms and home security and safety products, saw profits more than double in 2004.

According to its latest accounts profits rose to €11.05 million from €5.3m in 2004, the latest year for which accounts are available.

Turnover was up by 11% to €32.3m. Included in the turnover figure are sales of €4.46m from a company called AICO, a British distributor of home safety products it bought during the year.

At operating level, EI made profits of over €9.2m from its existing business, while AICO had an operating loss of €56,425. A note to the accounts says the purchase price of AICO, based in Middlesex in the south of England, was in the region of €8.6m.

The company said: “The business will continue to be developed through in-house R&D and the product range will be expanded from its existing base. Worldwide sales will continue to be developed.”

Following the surge in profit during the year, earnings carried forward increased from €40.7m at the beginning of 2004 to €48.35m at the end of the year.

The accounts show that most of the company’s turnover is generated in Ireland and the rest of Europe. Just €1.1m of the company’s turnover is from countries outside of Europe.

The company’s three directors - Michael Guinee, James Duignam and Michael Byrne - saw their remuneration rise from €212,049 to €295,118.

Some €2.2m in dividends were paid and proposed in 2004, the same amount as in 2003.

Mr Guinee, Mr Duignam and Mr Byrne are the main shareholders in the company.

The number of people employed at the financial year-end increased by 57 to 293, with the additions coming mainly in the sale and administration areas.

The extra staff numbers pushed up the total employee costs by nearly €1m to €6.7m. This is equivalent to an annual average salary per employee of just over €22,000.

The accounts also said that in 1997 and 2003, EI Company received €561,379 from the Shannon Free Airport Development Company for investment in research and development.

EI Company was formed following a management buyout of the business from General Electric in 1998. It is the largest manufacturer of residential smoke alarms, carbon monoxide alarms and heat alarms in Europe.