Cork IT firm PFH posts 50% drop in profit as staff costs surge 

The firm was acquired last year by Japanese imaging company, Ricoh for an undisclosed amount

Staff costs in the year rose by €5.7m in 2023, €4m of which went to wages and salaries.

Long-standing Cork IT firm, PFH saw profits halve last year with rising staff costs leading to a sharp fall in company earnings. 

The company's operating profit fell to €5.1m in 2023, down from €9.9m in the previous year which the company said was due to increased payroll and pension contributions. 

Despite this, the company posted an almost 5% rise in turnover last year, increasing to €183.4m, adding that it had benefitted from "strong demand in the marketplace."

PFH said turnover was partially driven by what appears to be a "permanent shift" to hybrid working and an increase in clients' digital projects, however, adding that it was mostly from "a strong focus" on selling more to existing customers as well as growing its client base year-on-year.

Staff costs in the year rose by €5.7m in 2023, €4m of which went to wages and salaries. The company's workforce remained steady in the period, with 714 people employed at the firm last year, with staff wages and salaries in the period totalling €33.8m. 

The company's total administrative expenses rose by almost €10m, increasing to €40.1m in 2023.

Founded in 1985 by Paul Hourican, PFH was acquired last year by Japanese imaging company, Ricoh for an undisclosed amount. The purchase saw Mr Hourican step down from his role as chairman, with the former founder since taking on an executive chairman role at supermarket supply chain firm, Kwayga. 

Last year also saw two other directors resign in a post-acquisition switch-up, with four new directors being appointed in 2023. 

The IT firm's pre-tax profit fell by more than two-thirds, dropping to 5.1m from €15.7m in the previous year. The company paid a dividend of €18.2m last year, up significantly from €7.4m in 2022.

Looking forward, the company said it will continue to identify additional IT-related solutions and expand its range of supports provide to customers.