USIT travels back into the black with 20-fold increase

Pre-tax profits at specialist student and independent travel firm Usit have increased 20-fold to €686,270 in 2013.

Accounts just returned to the Companies’ Office, show Usit Ireland Ltd recorded the huge rise in pre-tax profits in spite of gross revenues falling 15% from €28.7m to €24.47m. The drop in net revenues was at a lower rate of 6% from €6.23m to €5.87m.

The pre-tax profit of €686,270 compares to a modest pre-tax profit of €32,778 in 2012. The directors last year paid a dividend of €115,000. The principal activity of the group is the distribution of travel and work abroad programmes in Ireland to the student and youth sector.

The directors say Usit’s operating profit before depreciation and amortisation increased to €1.17m from €700,318.

A large factor behind the sharp increase in profits last year was the non-cash depreciation and amortisation costs falling from €692,926 in 2012 to €444,678 in 2013.

The numbers employed by the group increased in 2013 from 84 to 86 with staff costs declining from €3.57m to €3.4m. A breakdown of the employee number shows that 59 are engaged in selling with 27 in administration.

Directors’ remuneration increased in 2013 going from €152,027 to €187,799 with operating lease rentals declining marginally from €434,364 to €430,812.

The group’s selling costs in 2013 totalled €2.4m compared to €2.6m in 2012 with administrative expenses reducing from €2.89m to €2.22m in 2013. Interest payments reduced the firm’s profits by €41,761.

A corporation tax bill of €109,492 resulted in a post tax profit of €576,778. At the end of the year, the group had accumulated profits of €798,490.