Aer Rianta profits plummet 87%

PRE-TAX profits at the overseas duty-free operator owned by the Dublin Airport Authority (DAA) last year plummeted by 87% to €3 million.

Accounts just filed with the Companies Office by Shannon-based Aer Rianta International Ltd (ARIL), show the company recorded the sharp drop in pre-tax profits in spite of recording an 11.5% increase in turnover from €62.2m to €69.4m to the end of December last. ARIL had €153.8m in accumulated profits at the end of the year.

The chief factor behind the decrease in pre-tax profits from €25m to €3m was the exceptional €19.5m cost relating to impairment of financial assets and provisions against inter-company and related balances. This compares to a €5.2m cost in 2009.

The figures show that the numbers directly employed by ARIL reduced from 96 to 78 with the numbers at its Shannon base reducing from 77 to 60.

Jack McGowan was appointed chief executive in August and earlier this year ARIL sold several of its major travel outlets in Russia where it carried out a major proportion of its business last year.

In the past 12 months, ARIL has secured a foothold in India through its Delhi T3 deal and last August announced a deal to run 11 retail outlets for the Yunnan Airport Group in China.

According to the directors’ report “the trading performance of the company in 2010 has been good in light of the challenging current economic climate with turnover exceeding €69m”.

The figures show that income from financial assets and investments was €17.6m compared to €24.2m in 2009 and this income represents dividends received from subsidiary and associate companies.

The company turnover was generated through €61.4m in supply of goods and €7.9m in management fees. The company recorded an operating loss of €15.7m after the exceptional €19.5m cost. The €17.6m income from the company’s financial assets resulted in the company recording a €3m profit last year. Payroll costs decreased from €7.1m to €6.9m. Directors’ remuneration increased from €708,000 to €737,000.

The vast proportion of the company’s revenues were generated in the Commonwealth of Independent States (CIS) comprising of the Russian Federation, Ukraine and Belarus and eight other former Soviet republics with 95% in revenues, with the Middle East accounting for €3.2m.