USIT pre-tax profits fall 70% with restructuring

STUDENT travel group USIT saw pre-tax profits fall 70% last year due to restructuring costs.

Pre-tax profit at USIT Ireland ltd plunged from €2.1 million to €629,394 while turnover for the year to the end of October 2010 fell 17% from €9.6m to €7.9m.

The fall in profit is largely due to the one-off decline on non-core accommodation-leasing business in UCD, which ceased in 2009.

According to accounts just filed, the underlying USIT Travel performance exceeded that of the previous year with gross profit up on 2009, as the company continued to focus on “niche and new” products and programmes.

“Despite a challenging economic environment, the group continues to trade robustly as it adapts its offerings to meet the patterns of youth who are seeking out work, study and educational opportunities abroad,” the accounts state.

“The group will continue to focus on the growth of niche and sustainable earnings through suitable acquisitions and existing operations.”

The directors paid a dividend of €3,076,808 during the year compared with €12,000 in 2009.

The directors said they are satisfied that the group business plan will withstand any risks and uncertainties that may arise. Despite a challenging economic environment the group performed extremely well as it “continued to drive business through niche and new products”.

USIT’s owners are Neil O’Leary, the Ion Equity founder, and former Woodchester bankers Michael Tunney and David Andrews.

The company organises travel trips such as J1s and work abroad programmes. USIT was rescued from examinership in 2002 after it suffered in the wake of the September 11 attacks.

Restructuring costs in the year came to €320,364. Directors’ remuneration was €443,745, up from €300,000 in the previous year.

Employee numbers fell by one last year to 91 while staff costs fell from €4.5m to €4.4m.