Loyalty firm rewarded with €4.3m profit

PRE-TAX profits at Clare-based customer loyalty rewards firm, Loyaltybuild Ltd, increased by 27.5% last year to €4.3 million.

The US-owned company secured the increase after revenues rose 3% from €9.5m to €9.8m in the 12 months to the end of December.

In 2008, three Co Clare businessmen that co-owned the firm sold Loyaltybuild to US group Affinion for €25m.

It is understood that founder and chief executive Dominic Considine, aircraft leasing financier Domhnal Slattery and developer and hotelier Sean Lyne received half of the proceeds up front.

The balance was to be paid over a number of years, based on the firm meeting certain targets.

As 70% shareholder, Mr Considine was the biggest beneficiary, pocketing €8.5m up front from the sale. Mr Lyne, who owned 25% of the business, earned €3m, while Mr Slattery received €600,000.

In accounts filed to the Companies Office, Loyaltybuild, established in 1999, paid a dividend of €8.2m last year, with the company’s accumulated profits reducing to €679,663 afterwards.

Emoluments to directors last year was €80,027, down from €211,954 in 2009, while operating profit increased from €3.3m to €4.1m.

The revenues represent commission received for bookings made on discounted holiday packages for customer loyalty programmes.

Staff costs fell 9%, from €2.7m to €2.5m, as the numbers employed were reduced by 11 to 49.

The accounts show that Mr Considine remains as a director. The directors’ report states that “the company intends to continue to expand its activities in the coming year both within its existing markets and through the development of strategic partnerships in new markets”.

The filings show Loyaltybuild’s Irish business continued to decline last year, falling 18% from €4.3m to €3.5m, while business in other European countries increased by 21% from €5.2m to €6.3m.

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