The directors of Jaguar Land Rover's Shannon-based R&D arm said the location "can become a central hub for the overall JLR global software strategy”.
That is according to new accounts for Jaguar Land Rover Ireland (Services) Ltd which show that pre-tax profits reduced by 36% to €7.65m in the 12 months to the end of March last. The drop in pre-tax profits came in spite of revenues increasing by €2.9m, or 12%, from €24.9m to €27.9m.
A reduction in ‘other operating income’ — made up of automotive engineering R&D tax credits and IDA grant income — from €9m to €6.4m was a large factor in profits declining. Across fiscal 2021 and 2022, the company availed of R&D tax credits of €9.67m made up of €6.8m in 2021 and €2.84m in 2022.
In the two years, the firm received IDA grant income of €5.75m made up of €3.5m in 2022 and €2.18m in 2021.
The main activity of the firm is R&D activity relating to the delivery of key components to support connected car, advanced driver assistance system technologies and future automated driving features.
Numbers employed at the company reduced from 251 to 240 but staff costs increased to €18.97m. The directors state that the company “is utilising a senior leadership team of experienced software developers to help develop roadmaps and architectures for ongoing R&D activity”.
They state that “this team brings a wealth of directly relevant automotive and software architecture/development experience and an established engineering network to support initial scale growth”.
They also say that “with ongoing recruitment and this established team, JLR Ireland can become a central hub for the overall JLR global software strategy”.
On the firm's future developments, the directors say that the company’s objective “is to bring certain software expertise and development capability in-house so that we can suitably cost optimise and scale solutions for next-generation architectures”.
They state that the company’s “Digital Development Centre hub will be part of a global team in JLR to deliver these solutions and to advance JLR’s Autonomous Driving capabilities”.
They add that JLR Ireland “will continue to explore further opportunities to deliver innovative technology advancements that contribute to the overall JLR global software and R&D strategy”.
The profit takes account of interest payments of €1.35 million and non-cash depreciation and amortisation of €2.85m.