That is according to new accounts just filed by Loyaltybuild Ltd which show the firm recorded pre-tax losses of €9.1m in 2015.
In October, Loyaltybuild — which had built its business operating customer loyalty programmes for clients — announced the redundancy of 37 jobs at its Ennis head offices in Co Clare.
The new accounts show that the estimated cost of the restructuring is €780,000, and the directors say that the firm’s relationship with a significant client ended last month.
To maintain the company’s leadership in a competitive market, the company must refocus to become “an agile, leaner and predominantly digital-led business”, according to the accounts.
The decision to downsize the Irish operation comes three years after a cyber- attack put Loyaltybuild’s Irish business out of action for seven months, costing the company millions of euro in lost revenues.
No party was ever identified or brought to court for the cyber attack.
The accounts show that Loyaltybuild Ltd managed to halve its pre-tax losses to €9m in 2015, as its revenues rose 25% from €23.8m to €29.9m.
A large proportion of the €18m pre-tax loss posted in 2014 related to the restructuring of the firm’s French operation.
The company’s accounts cover the activities of Loyaltybuild’s European business, including its French operation.
The revenues generated in Ireland increased in 2015 from €5.9m to €6.3m, while revenues from elsewhere in Europe increased from €17.9m to €23.4m.
Staff numbers fell from 132 to 119, while staff costs in 2015 fell from €7.7m to €4.72m.
Directors’ pay in 2015 fell from €803,353 to €394,382.
The company is owned by US group Affinion.
The accounts say Affinion will continue to provide financial support.
It also confirmed that it will not seek repayment of the amounts due if they were to lead to financial difficulty for Loyaltybuild.
On the firm’s future developments, the directors believe that the company will focus on digital.
In 2008, three Co Clare businessmen that co-owned Loyaltybuild bucked the recession when they sold the firm to Affinion for €25m.
It is understood that founder and former chief executive Dominic Considine, businessman Domhnal Slattery and developer and hotelier Sean Lyne received half of the proceeds up front.