ISE turns loss into €6.3m profit

THE Irish Stock Exchange swung back into the black last year reporting pre-tax profits of €6.3 million following losses of €15.4m in the previous year.

Accounts for 2009 show there was a loss on investments held for trading of €22.1m due to the “significant falls in equity markets”.

It said that following a review the board agreed to follow a new investment mandate effective from the start of 2009 which has a more diversified portfolio approach with a combination of global equities and sovereign/highly rated corporate bonds being the focus of the higher investment yield fund and a deposit and bond focus for the more conservative risk-averse fund.

There was a positive return of €1.5m in 2009, it said.

The 13 directors saw their pay fall from €338,000 to €314,000 last year. Chairman Padraic O’Connor was paid €60,000, according to the accounts.

There were 88 staff at the ISE at the end of last year compared with 90 in 2008.

Staff costs were €7.7m, down from €8.8m in the previous year.

The operating profit for the financial year before tax and investment returns came to €4.7m down from €6.6m in 2008.

The ISE said the global financial turmoil in 2009 affected the revenues of the company which fell by 15% from €23.9m in 2008 to €20.3m in 2009. The main reasons for the decline in revenues arose from reduced new debt securities listing (down €2.4m or 41% on 2008) and reduced new investment fund listing (down €703,000 or 45% on 2008).

The cost base was “very actively managed during the year and administration expenses incurred by the company decreased by 11% from €17.3m in 2008 to €15.5m in 2009,” the accounts read.

The directors said they have a “reasonable expectation” the company has adequate resources to continue in operational existence for the foreseeable future.

The accounts said the freehold property at Anglesea Street was revalued at €2.8m at December 31, 2009, down from €4.6m at January 1, 2005.

A specific bad debt provision of €98,000 has been provided for at the end of 2009 compared with €150,000 in 2008 due to “concerns over certain debtors in the context of the current economic climate”.