Fexco profits jump 47% to €13.6m

THE financial services and payments group, Fexco, based in Killorgin, Co Kerry, made pre-tax profits of €13.6 million in 2004.

This figure is almost 47% more than the €9m the company made in the previous year, according to its latest accounts.

The company said the increase in profits came despite a difficult year for the industry.

"The group continued to trade profitably in 2004 despite adverse market conditions. The group experienced growth in its money transfer, international payment and dynamic currency conversion businesses, while bureau de change business continued to be affected by changes in tourist numbers.

"The results for the year are in line with the group's expectations," the company said.

Turnover for the year to end January 2005 was €35m higher than the previous 12 months at €120m, helped by a number of acquisitions, which include the purchase of a 51% stake in FAI Finance Corporation (a financial services firm) and the takeover of Money Transfer Nordic.

After paying out dividends and interest, Fexco retained €8.7m in profits for the year. The company's balance sheet shows retained profits have grown to just over €56.2m.

The company paid out €822,500 in dividends down from €1.04m in 2003.

Fexco is majority-owned by its founder Brian McCarthy, who set up the company in 1991. American payments group First Data Corporation holds a 25% stake.

The number of people employed by Fexco worldwide grew to 1,171 last year, an increase of 311.

Payments to the company's directors totalled €1.6m up from €1.09m in 2003.

The directors are listed as Mr McCarthy, the former Tánaiste Dick Spring (Fexco's executive chairman), managing director John Nagle, Denis Crowley, Thomas O'Beirne, Gerard Murphy, Thomas Walsh and Hikmet Ersek.

Fexco has expanded rapidly in recent years and is involved not only in money transfer, but in stockbroking, the Prize Bond Company, online bookings, car rentals and property management. Last month, it bought the consumer arm of the listed CNG Travel Group for €2m.

The recent acquisitions by Fexco have proved to be good buys. The purchase of the Prudential Investment Company of Australia in December 2003 added €13m in turnover in 2004 and returned a profit of €1m.

With almost €55m in cash on its books and a growing business, Fexco would be a very attractive investment proposition were it to float on the stock market.