Linen firm’s profits take a nosedive

WEXFORD linen rental firm Celtic Linen has seen its profits fall buy nearly third despite a rise in turnover, according to its latest annual accounts.

Documents filed recently at the Companies Registration Office (CRO) show that Celtic Linen’s pre-tax profits fell from €2.08 million to €1.57m in the year to the end of February 2003.

Turnover for the period, however, was up, rising from €23.8m to €25.1m. The company’s accounts reveal that the most of the dip in profitability came from a rise in administration expense, which rose from €4.02m to €4.5m over the 12 months.

However, the company remains extremely profitable with retained profits of 4.9m and shareholders funds of over €5m.

During the year the company’s workforce fell from 467 to 461 people, of which 329 are in production of textile and linen with 79 in sales and distribution and 53 in the administration.

The company’s wages and salary bill for the year rose from €9.01m to €9.21m despite the fall in staff numbers.

According to the accounts, Celtic Linen’s directors were paid €494,040 for the year, up from €410,616 in 2002. The accounts also disclose that the company paid dividends to its shareholders of €253,949, a drop on the €363,257 paid out in 2002.

The ordinary dividend was equivalent to €12.62 per share.

Celtic Linen’s directors are listed as joint managing directors Philip and Peter Scallan, Patrick Murphy, Brian Sweeney, Anita Geoghegan. Thomas Hassett and Thomas Butler.

The company has plants in Dublin and Cork as well as it main site in Wexford.

Celtic Linen hit the headlines last year when management said that high level of absenteeism threatened the viability of its Carlow site.

Apart from linen rental business, Celtic manufactures work wear for hotels and restaurants.