UPS Ireland delivers as profits surge to €6.8m

Pre-tax profits at the Irish arm of logistics firm, United Parcel Service (UPS) last year increased 12-fold to €6.766m.

New accounts show that United Parcel Service of Ireland Ltd recorded the sharp increase in profits after receiving a dividend of €5m from a subsidiary.

Revenues at the firm last year jumped by 7.5% from €47.8m to €51.4m, and numbers employed by the company last year increased from 272 to 284 people.

Operating profits at the Dublin-based company last year almost tripled from €692,340 to €1.88m.

The multi-million euro dividend payment came from subsidiary UPS International Insurance Ltd. A note attached to the accounts states that subsequently, the €5m was invested in Brown Insurance Ltd as a capital contribution.

The firm recorded the jump in gross profits after it managed to reduce its cost of sales, which fell from €25.63m to €24.88m.

A breakdown of the numbers employed show that 156 people were involved in sales and distribution and 129 staff are employed in administration.

The profit last year takes account of non-cash depreciation costs of €464,518. The accounts show that after paying corporation tax of €266,962 the firm recorded a post-tax profit of €266,962.

The figures show the firm received an unconditional capital contribution of €11m from parent UPS Corporate Finance SARL during the year. The business also made an actuarial loss of €4.47m on its pension scheme during the year.