Celtic Linen sees sharp fall in profits

Pre-tax profits at the Celtic Linen Group decreased sharply last year after revenues dropped by 2% to €22.6 million.

The Wexford-based group increased the number it employs to 371 last year, and accounts just filed by Celtic Linen Services Ltd and subsidiaries show that the group’s pre-tax profit declined by 85% from €101,734 to €15,000 in the year to the end of February last.

This followed revenues declining from €23.1m to €22.6m.

The results last year include an exceptional cost of €94,801 relating to restructuring of the group and this followed a cost of €171,094 under the same heading in 2010.

The principal activity of the group consists of laundry services, textile rental, dust control and hygiene products.

The figures show that the group’s operating profit decreased by 36% last year from €900,211 to €569,422.

Net interest payments of €459,621 contributed to the group’s pre-tax profit of just €15,000.

A tax charge of €64,018 resulted in a post-tax loss of €49,018. The group last year paid a dividend of €71,560.

The figures show that at the end of February last, the group had accumulated profits of €6.2m that resulted in shareholder funds totalling €6.3m.

The group had €2m in cash at the end of the year. The profit last year takes account of €1.7m in depreciation costs of owned and leased assets.

The numbers employed by the group increased from 355 to 371 last year, with a breakdown of the numbers employed show that 250 were engaged in production, 89 in sales and 32 in administration.

In spite of the increase in employees, the figures show that the group’s staff costs decreased from €9.8m to €9.6m.

Remuneration for directors last year decreased from €282,766 to €275,093.