Pre-tax losses increase threefold at Irish Press

PRE-TAX losses at Irish Press plc last year increased more than threefold to €1.92 million “in a very difficult year” for the company.

Accounts just filed by Irish Press PLC with the Companies Office show that revenues at the group from its publishing and media activities declined by 13% from €3.8m to €3.3m in the 12 months to the end of December last.

The group controls Tipp FM and the M+C medical marketing company and in his statement to shareholders, chairman and chief executive, Éamon de Valera said that “a most disappointing trading performance by M+C, together with a further write down of financial investments combined to result in a loss for the financial year”.

The figures show that the group’s performance was hit by €481,000 in impairment on investments. The pre-tax loss last year of €1.92m compared to a pre-tax loss of €658,000 in 2009.

The figures show that the group’s operating losses last year increased by 271% from €376,000 to €1.39m

In his statement, Mr de Valera said that “last year proved to be a very a difficult year” but later added that “the prospects for the current year are much improved and a basis has been laid for recovery in 2012”.

Mr de Valera stated: “Since year end, the group has taken full control of M+C. Turnover has increased and is projected to be over 20% higher than last year. Overhead costs have been reduced significantly. As a result, there has been a large reduction in the loss to date in 2011 and M+C is expected to be in profit next year.

“The group is continuing to invest in M+C so that it can expand the range and depth of the marketing services that it offers to its clients.”

Mr de Valera said that “Tipp FM has benefited from very tight control of expenditure, traded very close to break even in extremely challenging market conditions despite the added burden of the broadcasting levy”.

He told shareholders: “Tipp FM has maintained its listenership position with a market share of over 52% and the high quality of its programming.

“It is well positioned to benefit from a recovery in the broader economy whenever this occurs.”

Mr de Valera conceded that “the timing of the initial investment in M+C and the purchase of 5/7 Clanwilliam Terrace seems unfortunate with hindsight, but the economic collapse following the banking crisis was unforeseen”.

He added: “The directors are steadfast in their determination to take all necessary steps to ensuring the future success of the business.”

The firm had shareholder deficit totalling €946,000 last year. The numbers employed by the group remained static at 59 with staff costs increasing from €2.19m to €2.25m.