TCH reports 2008 operating profit

IRISH Examiner owner Thomas Crosbie Holdings made operating profits of €5.65 million in 2008.

However, the company recorded a pre-tax loss of €3.5m last year as a result of exceptional losses and fundamental reorganisation costs of €7.75m, accounts to be filed with the Companies Registration Office reveal.

Group managing director Anthony Dinan said the positive operating results are set against a very difficult trading environment.

The directors’ report states: “A loss before taxation of €3,558,974 (2007: profit €12,414,273) was recorded after an exceptional item of €5,426,690 and costs of a fundamental reorganisation of €2,319,165.”

The €5.4m exceptional loss records a reduction in the market value of investments in shares and Mr Dinan said the reorganisation costs related to redundancies in the Western People and other subsidiaries.

“Our prudent and early cost reduction programme contributed to this performance. I wish to acknowledge the efforts of staff and management during a very difficult year — 2009 is, and will continue to be, very challenging for us and our industry. This is no different to most industries in Ireland today. However, we will continue to manage our business in a manner that ensures that we emerge from this recession ready to take advantage of opportunities as they arise,” said Mr Dinan

TCH chairman Alan Crosbie said: “The 2008 operating performance is an endorsement of the strategy we adopted to manage our cost base, and the results are very satisfactory in the context of the current market turbulence.”

Dividends paid to equity shareholders increased by 19%, from €3,205,192 in 2007 to €3,821,166 in 2008. A statement issued by the company said the dividend was based on 2007 results, when the company made pre-tax profits of €12.4m. The value of the company’s brands fell slightly to €56.4m from €56.6m. Directors’ remuneration and other emoluments at TCH increased by 18%, to €1.28m, up from €1.08m in 2007.

Average numbers employed by TCH rose to 802 in 2008, up from 760 in 2007. However, wages and salaries actually fell to €37.84m from €38.21m in 2007. The increase in average staff numbers relates to the acquisitions of WLR FM and Beat 102-103 FM mid-way through 2007.

The company operates two defined benefit pension schemes, and the accounts show the net pension liability, under FRS17 pension provisions, rose to €11.1m at the end of 2008, up from €2.7m a year earlier.

TCH had a net debt of €26.65m at the end of 2008, up from €22.93m at the end of 2007.

TCH spent €110,898 on research and development during the year.