Shannon’s Avocent posts 8.5% profit drop decline

Pre-tax profits at the main Irish unit of US IT firm, Avocent, last year declined by 8.5% to $2.4 million (€2.1m), figures show.

According to accounts just filed by the Shannon-based firm with the Companies Office, Avocet International Ltd recorded the drop in pre-tax profits after revenues decreased by 9.5% from $67.5m to $61m in the 12 months to the end of September last.

The firm employs 95 people at its Shannon base and its principal activity is the development, manufacture, distribution, sales and marketing of IT solutions products for the European, Middle East, Africa and Asian markets.

On the company’s profits, the directors state that “the operating margin percentage remained consistent with prior year at 4.45%”.

On the firm’s future developments, the directors state that “as a result of new product developments, the company expects to expand its offering to customers in the form of hardware, software and services which will contribute to revenues and profitability in the future.”

The figures show that the latest profit increased the firm’s accumulated profits of $1.65m. The company’s profits were hit by interest payments totalling $313,185 compared to interest payments of $374,115 in 2013. It had total shareholder funds of $75.7m at the end of last September.

The firm’s cash during the year decreased from $1.67m to $1.58m. Staff costs last year rose from $8.768m to $9.63m.

The firm’s two directors are listed as Frank Woods and Stephen Ryan and the figures show that directors’ remuneration for management services last year totalled $308,029 compared to $308,865 in 2013.

The returns show that $54.9m of the company’s $61.1m in revenues was recorded within the EMEA region last year with $4.09m in Asia and $2m in ‘other’.