Pre-tax profits at the main Irish subsidiary of US computer giant Dell last year increased by 78% to $10.9m (€8m) in spite of a slump in PC sales.
New figures show that Dell Products had theincrease in spite of sales decreasing by 9% from $13bn to $11.9bn in the 12 months to the end of Feb 1, 2013.
The prior year was for a 53-week year compared to 52 weeks last year.
The Dublin-based firm employs 1,000 and last year paid out a dividend of $202m.
The subsidiary’s principal activity is the sale anddistribution of Dell products in the European, Middle East and African markets.
According to the directors’ report, the drop in turnover “was primarily driven by a decrease in revenue from our customer segments, though all of our segments experienced declines in revenue.
“These declines were due to weak global economic conditions, competitive pricing dynamics and increased competition from alternative mobile devices.
“These dynamics particularly impacted demand for our client products.
“The challenges in our client business were partially offset by increases in revenue from enterprise solutions and services.
“We expect the challenging environment in 2013 to continue into 2014,” it read.
The filings show that the company’s cost of sales increased from $11bn to $01bn last year with the company’s distribution costs down from $1.64bn to $1.49bn.
The company has its registered office in Dublin, though the directors state that the books of account are kept at Dell’s plant at the Raheen Industrial estate in Limerick.
The accounts show that on Feb 1, the company had $102m in shareholder funds, including $15.3m in accumulated profits.
A breakdown of the company’s turnover showed that 98% of Dell Products sales were recorded in Europe with the remainder for ‘rest of world’.
The filings show that the numbers employed by the company increased from 953 to 1,000, with staff costs decreasing from $108.2m to $102.5m.
The profit last year takes account of non-cash depreciation costs totalling $7.2m.
The firm paid tax of $2m on its profits.
The accounts confirm that the company has received $6m in cumulative employment grants from the IDA and that they can be revoked in certain circumstances.
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