Pre-tax profits at Shannon- based aircraft leasing and sales firm Magellan Aviation Services increased by 81% to $7.3m (€5.8m) last year, figures show.
Accounts filed to the Companies Office show Magellan increased its revenues by 15% from $45.1m to $51.8m in the 12 months to the end of December last.
The principal activity of the company is the purchase, stocking and resale of rotable and expendable aircraft parts and the leasing of engines.
According to the directors’ business review “the increase in operating lease revenue during the year resulted in the overall increase in revenues.
“Aircraft and aircraft parts sales were consistent with levels achieved in previous years”.
They said “the pool of engines available for lease has increased and this has supported the strong performance of the leasing business”. The report says: “Overheads were in line with expected levels.
“The operating profit has increased from $7m to $10m in 2011 — an increase of 43%. The overall debt increased from $38m to $39.5m — the bank debt portion decreased year-on- year but this decrease was more than offset by an increase in loans from related parties.”
The directors state that the company will continue to develop its business worldwide.
Magellan is one of a number of aircraft leasing firms based in Shannon with Shannon Engine Support and General Electrical Capital Aviation Services also located in the Shannon Free Zone.
Transport Minister Leo Varadkar has said his department is considering the development of an international services centre for the aviation industry at Shannon.
The figures for Magellan show that at the end of last December, the firm had accumulated profits of $18m.
The filings show the firm last year paid $14.7m on tangible assets for lease and this followed the company spending $11.8m under the same heading in 2010.
The firm has five directors and emoluments to directors last year increased by 18% from $735,548 to $869,833. The profit takes account of depreciation costs totalling $11.5m.
The numbers employed by the firm increased by two to 19 with staff costs, including executive directors amounting to $2m last year.
The company paid tax last year of $925,000 compared to $555,000 in 2010. The firm’s cost of sales increased from $35.1m to $38.2m with administrative expenses increasing from $2.8m to $3.4m.
The accounts show the firm’s loan interest payments totalling $2.7m reducing the company’s profits to $7.3m.
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