Executive Travel Group sees pre-tax profit double to €820k

DESPITE a very difficult year, corporate travel firm Executive Travel Group saw its pre-tax profit almost double to €821,617 last year.

The company, which was acquired by its international partner, Carlson Wagonlit Travel (CWT), in December, said the last quarter of 2008 was particularly difficult in the corporate and leisure markets.

Turnover dropped slightly from €37.5m to €33m.

The group’s main market is providing corporate travel services, mainly to the multi-national sector in Ireland.

It said despite the difficult trading conditions it remained profitable for the whole year.

“The market is expected to remain difficult during 2009 – however the group expects to continue to be profitable for the foreseeable future,” it said.

The company also said it has no material exposure to foreign currency risks adding that it does not have any borrowings.

It said most customers pay for the service by means of credit card and credit is only extended to customers who are assessed to be of strong financial standing.

The company said the volume of transactions declined during the year although it achieved 85% of its net profit target.

“Cash flow from operation was consistent with the level of profits,” it said.

There were dividend payments of €2.5m made during the year as opposed to €22,000 in 2007.

The number of people employed by the group dropped by seven to 52, resulting in staff costs falling slightly from €2.68m to €2.2m.

Directors’ remunerations for management services fell from €741,283 to €648,089.

Executive Travel Group was controlled by Harrin Ltd and in December 2008 the company was acquired by CWT.

CWT had been its partner in Ireland for 13 years.