High salaries push CHC’s loss to €3.1m

Average salaries of €100,000 each for the 113 staff at the firm operating the €500m state contract to provide helicopter Search and Rescue (SAR) services contributed to losses at the firm increasing by 13% to €3.1m last year.

CHC Ireland Ltd provides the SAR Service from its four main bases at Dublin, Sligo, Shannon and Waterford for the State and commenced a 10-year €500m contract with the Government in 2012.

The Air Corps withdrew from limited SAR duties in 2004 and the current contract with the Canadian-owned CHC has the option to extend for a further three years on a year-by-year basis.

New accounts filed by CHC Ireland Ltd with the Companies Office show that it recorded increased losses as revenues climbed by 19% from €24.28m to €28.8m in the 12 months to the end of April 30 2013.

Staff costs last year increased from €12.6m to €13.4m with salaries totalling €11.35m in 2013.

The €11.35m in salaries works out at €100,477 on average for the 113 staff made up of 107 in operations and six in administration.

The firm recorded the €3.14m pre-tax losses as net operating expenses climbed from €27.1m to €31.97m.

According to the directors’ report, the firm incurred increased losses “due in part to reduced activity from SAR operations and to increased costs related to the transition of new S92 aircraft.”

Flying hours for SAR operations were 2,739 compared to 3,162 in the previous year.

The directors state that “during the year, the company derived a large percentage of its revenue from the provision of Search and Rescue services.

“The company believe its competitive position will enable it to continue to be a major provider”.

The figures show that emoluments, including pension contributions to directors, Shane Leonard, Mark Abbey and Mark Kelly, last year increased from €257,000 to €314,000.

However, accounts for a connected firm, CHC Leasing (Ireland) Ltd, show that it recorded a pre-tax profit of $19.1m as revenues increased only marginally to $85.6m in the 12 months to the end of April 30.

The $19.1m pre-tax profits represent a 33% drop on the €28.7m profits recorded in fiscal 2012.

The directors’ report states that “during the year, the company has continued to provide aircraft leasing and ancillary activities supporting fellow group companies and related parties operating primarily in the global oil and gas market and the search and rescue sector.

The figures show that €81.5m of revenues were generated in Europe and €4.1m in Ireland.

Staff costs last year increased from €1.3m to €1.54m. Sales to connected firm last year totalled €39m.