Pre-tax profits at SAP’s Irish arm dip

THE main Irish arm of German-owned technology company, SAP sustained a 3% drop in pre-tax profits to €2.1 million in 2009.

Accounts recently filed with the Companies’ Office show SAP Service and Support Centre (Ireland) Ltd’s revenues decreased marginally from €55.7m to €54.7m to the end of December 2009.

Numbers employed by the firm dropped in 2009 from 670 to 654 with 642 employed in service and support and 12 in administration.

The directors state it is their intention “to continue to develop the activities of the company, both from existing markets in which SAP operate and new markets that they seek to gain market share”.

The company offers service and support activities to fellow group activities in Europe, Middle East and Africa, South America, Canada, Australia and the USA.

The filings show that at the end of December 2009, the company had accumulated profits of €20.1m. The company had shareholder funds totalling €25.6m.

The figures show that in spite of the drop in numbers employed, the company’s staff costs increased from €36.9m to €37.1m. Directors’ emoluments increased from €392,753 to €437,949.

Cost of sales increased from €43.7m to €44m, while administrative expenses dropped from €10.2m to €8.6m. Operating profits increased from €1.7m to €2m. However, much higher interest receivable payments of €440,222, up from €90,025, caused a dip in pre-tax profits in 2009.

The figures show the company paid €498,185 in tax in 2009. The accounts include a depreciation charge of €2m.

The company did not recommend the payment of a dividend in 2009.