Southern Advertising profits slide 35%

PROFITS before tax fell by 35% last year at Southern Advertising, the advertising agency with offices in Cork and Limerick.

Figures lodged this month with the Companies Office for 2005 show that pre-tax profits fell from €360,676 to €235,141 for the year while at the gross profit level the change was only marginal.

The tell-tale figure looks to be the increase in staff costs, which went up from €1,254,643 to €1,381,234 during the year.

But Pat Lemasney, a senior director of the group said there was nothing out of the ordinary in the level of increases in the staff costs.

Recruits brought in during the year were “high-quality people, and you have to pay for quality”, he said.

Staff costs generally would also have been a factor in the increased wage bill, as the 35 employed in the two offices were rewarded for their efforts during the year, he said.

Mr Lemasney said the figures reflected a good year for the group, where the level of business transacted was in line with 2004.

“Overall, I am very pleased with our figures for 2005,” he said.

On the state of the market, he said: “I am looking forward to another positive performance over the coming year.”

Southern’s cash reserves jumped from €89,685 in 2004 to €526,470 for the 12 months under review to the end of September 2005.