Cost-cutting moves by pigsback.com ‘to result in continued operating profits’

COST reduction measures undertaken by the owners of pigsback.com will help the company achieve continued operating profits this year.

Last year Empathy Marketing made a pre-tax loss of €906 following a loss of €4.9m in the previous year.

However, included in the 2008 loss was a provision of €4.7m in respect of an intercompany receivable balance. The loss for the prior year excluding this provision was €157,005.

Turnover in the year to the end of December 2009 fell from €3.1m to €2.7m.

“During 2010 the company significantly improved its balance sheet by raising new equity and through the conversion of shareholder loan notes. It also restructured its financing facilities and as a result it now has greater stability in this regard,” accounts just filed read.

The company said it is fortunate to be positioned in the digital advertising sector.

“The Irish economy, however, remains a major concern with business confidence dented and consequent cuts in advertising and marketing spend.

“However, the company’s brand and very active membership, as well as its new product developments, notably Pigsback Mega Deal, Pigsback on Facebook and Pigsback Local give the directors significant further confidence for the future,” the accounts read.

Empathy Research and Empathy Communications are also expected to contribute well in 2010, they said.

“As with other companies in the advertising industry, the company has experienced drops in demand for advertising services as marketing spend is curtailed in the current economic climate,” they added.

Staff numbers in the year fell from 48 to 40 with staff costs dropping from €1.7m to €1.2m.

The company is run by founder Michael Dwyer, who has 1.3 million shares in the firm.