NCT firm made €44m profit in 10 years

THE company that operated the Government’s national car test programme generated pre-tax profits of €44 million on revenues of €295m over the past 10 years.

In accounts recently filed with the Companies’ Office, they show that the Swiss-owned Vicuna (formerly National Car Testing Service) secured pre-tax profits of €8.7m in the year to the end of December 2009.

The company won the contract to operate the Government’s national car testing programme in 1999 and a study of its accounts between 1999 and 2009 show that the company generated profits of €44.2m on a turnover of €295.3m.

Vicuna’s lucrative contract expired on December 23 last year after it was beaten into second place by Spanish multinational testing and services group, Applus RTD, in the tendering process run by the Road Safety Authority (RSA) for a new 10-year contract.

Vicuna operated 43 NCT centres across the country and at the end of December 2008 employed 518 people.

A study of Vicuna Ltd’s returns since 1999 show it incurred losses of €5m connected with start up costs in 1999 and 2000.

However, in 2001 it secured a pre-tax profit of €857,000; €4.8m in 2002; €6.1m in 2003; €5.4m in 2004; 5.8m in 2005; €6.8m in 2006; 6m and in 2008 and €5.8m in 2008.

Last year, Vicuna Ltd enjoyed a 50% increase in pre-tax profits to €8.7m after revenues increased from €42m to €43.4m.

Last year Vicuna Ltd paid no dividend. Since 2003, Vicuna Ltd paid €32.2m in dividends.

The NCT was introduced on January 4, 2000 to comply with an EU directive.

The standard rate for an NCT today is €50.

Statistics show that in Vicuna Ltd’s final year, it carried out a total of 864,376 tests with a 51% pass rate.

The figures show that in 404,945 re-tests, there was a pass rate of 90%.

The main failure items were front suspension, brake lines and tyre conditions.

Under the new contract in the 11 months to the end of November this year, 838,238 tests were carried out with a 51% pass rate and a 90% pass rate on the 389,324 re-tests.

The figures show that 518 people were employed by Vicuna Ltd last year with the company’s wage bill increasing marginally to €20.9m.

The filings show that the company’s directors’ emoluments last year decreased from €530,808 to €427,400.