Pre-tax profits climb at ebookers

Pre-tax profits at the Irish arm of online travel firm ebookers increased six- fold in 2010 to €352,518 after gross revenues increased by 33%.

Accounts just filed by ebookers.ie Ltd to the Companies Office show that the firm recorded pre-tax profit of €352,518 in the 12 months to the end of December 2010, after recording a pre-tax profit of €58,608 in 2009.

This follows the firm’s gross revenues increasing 33% from €26 million to €34.8m in the 12 months to the end of 2010.

However, the primary factor behind the company’s increased profit was an exceptional item concerning €782,857 received, relating to a VAT refund and reversal of a VAT accrual.

The figures show that the company’s gross cost of sales last year totalled €31.9m, resulting in a gross profit of €2.83m.

Higher administrative expenses of €3.3m resulted in the company’s operating loss increasing sharply from €7,436 to €468,140.

The €782,857 exceptional item, along with interest receivable of €37,801, resulted in pre- tax profits of €352,518.

The exceptional item arose from a VAT refund of €341,753 and reversal of prior period VAT accrual of €441,104.

A note explains: “During the year, the company made an application to the Revenue Commissioners following a change in revenue practice that permitted the company to retrospectively claim VAT input credits, resulting in a refund being made to the company of €341,753.”

The directors, in their report, said they “are satisfied with the results for the year”.

The profits recorded last year resulted in accumulated profits amounting to €476,092, with shareholder funds totalling €902,395.

The figures show that the numbers employed decreased by one to 22, with staff costs decreasing from €484,859 to €468,861.

The profit takes account of non-cash depreciation costs of €24,238. The directors’ remuneration last year totalled €103,245, up from €81,897 in 2009.

The company is a subsidiary of British-based ebookers Ltd, whose ultimate parent is Orbitz Worldwide.