Fexco turnover rises by one fifth

PROFITS at Fexco were static in 2005 despite turnover rising by one-fifth to a record €166.7 million.

Accounts just filed for the Killorglin, Co Kerry-based company, which is involved in financial services, electronics payments and travel bookings, made a pre-tax profit of €13.2m, down from €13.6m in 2004. The firm said this was the result of a restructuring charge and higher staff costs.

Turnover in 2005 was up €28m on the previous year and 10m ahead of the company’s target.

“Year-on-year growth is the result of the growth of existing business and acquisitions made during 2004 being consolidated for the year 2005. The group experienced growth in its money transfer, international payments and dynamic currency conversion businesses, while bureau de change businesses continue to be affected by changes in tourist numbers,” the firm said.

In 2005 Fexco bought travel company PlacestoStay, a tax refund business and an asset finance company in Ireland. It said several of these companies and some of its existing brands in Ireland have the potential to expand abroad.

The company’s shareholders received a 70% increase in the dividend payout to nearly 1.6m. Fexco is majority-owned by Brian McCarthy, who set up the company in 1991. American payments group First Data Corporation holds a 25% stake. Senior Fexco management also hold shares.

The number of employees rose to 1,385 from 1.171. This pushed up the wages bill by €12m to €53.7m. Directors’ pay for the year was €1.47m.

The directors include former Labour leader Dick Spring, who is the executive vice-chairman.

The company’s 2005 accounts show Fexco has €53m in cash on its books and retained profits have risen to almost €70m.

In addition to its Irish businesses, it owns an investment company in Australia and recently formed two companies in the Middle East. It is involved in a Prize Bonds-style operation in Dubai and has a joint venture with a property management firm in Bahrain.