Fashion jewellery maker sees profits jump ten-fold

ONE of the largest employers in Co Limerick, Andersen Ireland Ltd, increased its pre-tax profits ten-fold in 2009 to €536,925.

According to accounts returned to the Companies Office, the Austrian-owned fashion jewellery manufacturer increased pre-tax profits despite revenues decreasing 12% from €18 million to €15.8m.

The company, based in Rathkeale, employs 198 people and paid €1m to its shareholders in 2009. Last year, the Andersen family sold their interest in the business to NWA Ventures GmbH.

The firm’s operating profits increased five-fold from €107,097 to €562,041. It also benefited from lower bank loan interest repayments last year of €25,116, compared to €55,758 in 2008. A major factor behind the large increase in profit was the firm cutting staff costs by €925,000 (14%) from €6.6m to €5.6m. The numbers employed fell from 204 to 198.

The profits achieved last year followed the company returning to profit in 2008 after a pre-tax loss of almost €225,000 in 2007.

The figures include a depreciation cost of €312,904. The cost of sales also declined — going from €15.9m to €13.3m.

The directors state the principal risks to the company are any events that could lead to a disruption in the supply of gold or rhodium to the Irish market, or a significant decrease in demand for costume jewellery in the European market.

The accounts show the company had accumulated profits of €6.2m at the end of 2009 and had net assets of €10.2m. The company did not pay any corporation tax in 2009 and 2008.