Loyalty firm’s pre-tax profits down 7%

Pre-tax profits at Co Clare- based customer loyalty rewards firm, Loyaltybuild decreased by 7% last year to €4m in spite of an increase in revenues.

The US-owned company recorded the decrease after revenues increased by 3% from €9.8m to €10.1m in the 12 months to the end of Dec last year.

In 2008, three Co Clare businessmen that co- owned the firm bucked the recession when they sold it to a US group, Affinion for €25m.

It is understood that founder and CEO Dominic Considine; businessman and aircraft leasing financier, Domhnal Slattery, and developer and hotelier Sean Lyne, received half of the proceeds up front.

The balance was to be paid over a number of years, based on the firm meeting certain targets.

As 70% shareholder, Mr Considine was the biggest beneficiary, pocketing in the region of €8.5m up front from the sale.

Mr Lyne, who owned 25%, earned about €3m initially, while Mr Slattery received about €600,000.

The accounts show Mr Considine resigned as a director last year. Pre-tax profits decreased from €4.3m to €4m. Revenues represent commission received on bookings made on discounted holiday packages for customer loyalty programmes.

Accumulated profits last year totalled €4.1m. No dividend was paid compared to €8.2m in 2010.

The company increased the numbers employed from 49 to 51 with staff costs increasing by 4.5% from €2.5m to €2.6m.