Slight decline in Tramway revenues

THE company which develops advertising campaigns for Aer Lingus, the Road Safety Authority and Bank of Ireland saw revenues fall slightly last year.

Tramway Investment Holdings, the firm that owns advertising agency Irish International, saw turnover, including the share of a joint venture, fall from €54.7 million to €52.7m in 2010.

Less the share of the joint venture, turnover was down from €17.8m to €16.4m.

Pre-tax profits fell from €1.9m to €1.5m.

Directors’ remuneration was up from almost €1.6m to close to €1.8m.

Staff numbers fell by three to 80 in the year, while the payroll costs fell from €6.7m to €6m.

During the year the group performed well in a challenging environment and the directors believe prospects for continuing growth in the group’s activities are reasonable, according to accounts just filed for 2010.

Gross profits were down to €8.9m from €9.8m, while the cost of sales fell from €8m to €7.4m.

The directors consider the principal risks and uncertainties the company faces to be the risks of a continuing downturn in the economy, customers transferring to competitors, not retaining key employees and a rising cost base.

“The directors believe that these risks are effectively managed through a strong focus on client and employee satisfaction,” comments on the accounts read.

The group is owned by Omnicom in the US.