€860,000 prize bond winnings unclaimed

INVESTORS who hold €375.1m in prize bonds received a return of 2.75% tax free in prize money but a massive €860,000 in winnings remains unclaimed by 5,000 bond holders.

The Prize Bond Company yesterday published its annual report which shows sales increased by 11% to €83m in 2002 with the value of prizes increasing by 12% to €9.34m. However, payments to investors who cancelled their prize bonds came to €42.7m giving net sales of €40.2m in 2002.The company, a joint venture between An Post and FEXCO, operates the draw on behalf of the National Treasury Management Agency (NTMA) which manages the national debt on behalf of the minister for finance.

Prize Bond company chairman MichaelO’Keeffe, commenting on the results said: “I believe that investors are increasingly attracted to Prize Bonds as a secure, attractive, risk-free investment option.

“This is especially so now with uncertain equity markets and the prevailing low interest rate environment, and is borne out by the continued increase in the value of the average purchase.”

Sales continue to go well for the company and Mr O’Keeffe reported that the success of the marketing campaigns and favourable economic factors has been evident in 2003 with gross sales of €35.7m so far this year and close to €10m in repayments of bonds.

The Prize Bond Company is currently running a campaign to highlight the number and value of unclaimed prizes. Since the commencement of the prize draws in 1957 there are over 5,000 prizes unclaimed at a total value of €860,000.

The company’s website is now being used to sell prize bonds as well as enabling surfers to check winning numbers.

In 2002 internet sales through the company website www.prizebonds.ie broke the €1m threshold for the first time.

The value of averageinvestment by prize bond buyers increased by 29%,to €466 in 2002. All winnings are tax-free and confidential, and holders can cash in Prize Bonds at any time for their cash value, after an initial holding period of three months. The company’s 2002 annual report shows that it made pre-tax profits of just €5,635 (€3,847 2001) and no profit (€3,847 2001) after tax on a turnover of €4,482,775.

The report shows that An Post received contract fees of €1.27m ( €1.2m 2001) from the Prize Bond company and employed just six staff on this contract work.

FEXCO received fees of €2.6m (€2.4m) and employed 38 staff on this contract work.

Marketing expenses came to €597,150(€565,933 2001).