Irish Search and Rescue firm returns to profit

The firm that operates the €500m state contract to provide helicopter Search and Rescue (SAR) services last year returned to profit after revenues jumped by 46% to €42m.

Figures lodged by CHC Ireland Ltd show the firm recorded a pre-tax profit of €427,000, after a pre-tax loss of €3.14m in 2013 — a positive swing of €3.83m. Revenues jumped from €28.8m to €42m during the 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 contract with the Canadian-owned CHC has the option to extend for a further three years on a year-by-year basis.

The accounts, for the 12 months to the end of April last, show the firm’s 119 staff are well rewarded for their work with average salaries at over €100,000.

The figures show the 119 staff received an average salary of €106,512 last year, or an aggregate €12.67m.

According to the directors’ report “the profit for the year was realised following the completion of the transition to new S92 aircraft. Flying hours for SAR operations were 3,193, compared to 2,739 in the previous year.

The report adds: “During the year, the company derived a large percentage of its revenue from the provision of SAR service. The company believes its competitive position will enable it to continue to be a major provider of these services.”

The directors pointed out the company successfully completed the transition to the S92 fleet on December 11, 2013, and state they “expect the company to continue to provide SAR services and generate positive results in future years”.

The figures show the firm recorded a modest operating loss of €14,000 and interest receivable of €427,000 contributed to the pre-tax profit of €427,000.

Accounts for a connected firm, CHC Leasing (Ireland) Ltd, show it recorded a 31% increase in pre-tax profit to $25m, up from $19m. The increase came in spite of revenues decreasing from $85.64m to $73.8m.

The directors’ report states “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.”