€903k compensation payments eat into Hertz Irish profits

A compensation pay-off of €903,000 to directors for loss of office at the Irish arm of car rental firm Hertz contributed to pre-tax profits slipping to €12.88m in 2015.

Newly filed accounts for Hertz Europe Service Centre show the company’s pre-tax profits declined marginally, from €13m to €12.88m, and revenues fell by 1.5% to €62.7m in the 12 months to the end of December 2015.

In the accounts, the company’s directors state: “2015 was another successful year for HESC. We are continuing to invest in process improvement initiatives across all of our functions in order to further enhance the quality of the service we provide to fellow Hertz Corporation subsidiary undertakings.”

The company provides centralised reservation, customer, and accounting services to each of the firm’s corporate European locations and also offers Europe, Middle East, and Africa licensee support.

The Irish business covers the ‘rent a car’ and ‘equipment rental divisions’.

As of the end of 2015, the company had accumulated profits of €49.6m and shareholder funds of €67m.

No dividend was paid in 2015.

The company’s cash pile increased from €5.23m to €5.36m. Staff costs declined from €39.9m to €37.8m.

The accounts show that pay to directors reduced from €299,000 to €292,000 in 2015 while directors also enjoyed ‘other benefits’ of €106,000 and €21,000 in pension contributions.

A total of €903,000 in compensation was paid or is payable to directors in respect of loss of office or other termination payments.

Numbers employed by the firm reduced from 948 to 925 with 481 in administration; 430 in sales, and 14 in management.

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