Profits at Ennis Lifts fall by 50%

PRE-TAX profits at Co Clare-based firm, Ennis Lifts Ltd last year dropped by 57% from €1.39 million to €594,097.

Managing director, Garech McGuinness said he is quite satisfied with the company’s performance. “The results are in line with projections.”

Mr McGuinness said the company addressed its cost base last year. “We had to make cutbacks in order to compete and in order to retain stability.”

He went on to say this year was more challenging than last and expected next year to be more challenging again. “It is tough for everyone and it is getting more difficult to have a clear vision.”

The abridged accounts show the company’s gross profit last year dropped from €7.7m to €4.9m.

Mr McGuinness said five to six workers were put on short time last year, but no redundancies took place.

He added: “You would like to think that the overall economic situation is close to bottoming out.

Figures show the company’s distribution costs dropped from €2.2m to €1.5m, with administrative expenses dropping from €3.8m to €3m.

The figures confirm the company had shareholder funds totalling €2.1m, including accumulated profits of €823,953 at the end of December last.

The company had cash in hand of €1.97m at the end of the year. Operating profits were €475,113 and the company’s profits were boosted by interest receivable of €114,649 last year. The company purchased €1.297m of its own shares last year.

According to the directors’ report: “The company made profits during the year even though turnover decreased significantly.

The directors took the necessary action during the year, given the circumstances with the construction sector to ensure that they remained competitive and had the ability to remain profitable The directors confirmed that this was in line with company expectations. The directors are confident that they can maintain this level of success in the future.

Demand for the company’s products and services remained strong throughout the period.