Pre-tax profits at country’s largest taxi company plunge

PRE-TAX profits at the country’s largest taxi company, National Radio Cabs, last year plunged by 81% from €426,736 to €78,131.

Accounts just filed by National Radio Cabs plc with the Companies Registration Office show that the company sustained the severe decrease in pre-tax profits after the company’s revenues dropped by 25% from €15m in 2009 to €11.2m to the end of February 2010.

The figures show that in spite of the drop in turnover, the company’s administrative costs decreased only marginally from €2.36m to €2.33m.

This contributed to the company’s operating profits dropping by 61% from €587,945 to €225,249.

Director of Operations at National Radio Cabs, Michael Branagan, said yesterday: “In general we were happy with our performance considering the current economic climate.”

Mr Branagan said that one of the main factors in the drop in profits “was discounts which the corporate and the general public required due again to the recession”.

Board member Mr Branagan said: “The business is currently trading fine. We are like many companies in this difficult climate concentrating to stay in the black and to date we have achieved that.”

The company has 43 staff with 800 taxis operating under the National Radio Cab banner and asked how the company will perform in 2011, Mr Branagan said: “We expect the company to perform on par with 2010 whilst keeping a close eye on outgoings.”

Mr Branagan said that the taxi market is way over supplied with taxis: “Because of the oversupply of taxis currently the general public don’t have the need to ring for a taxi.”

The figures show the company’s profits were hit by interest charges totalling €147,118, down from the €161,209 paid in 2009.

The after-tax profits of €53,035 last year resulted in the company’s accumulated profits totalling €2.82m last year. The company did not pay a dividend last year after paying a dividend of €35,854 in 2009.

“In common with all companies in Ireland in this sector, the company faces risks and uncertainties such as competition and increasing costs. The directors are of the opinion that the company is well positioned to manage these risks,” the directors said.

The accounts show the company spent €254,664 in capital expenditure last year and this followed a capital spend of €657,847 in 2009.

The accounts include a depreciation costs of €426,713.

The accounts show the company’s four directors last year shared an aggregate €414,399 in remuneration, representing a slight increase on the €410,749 received in 2009.

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