Pre-tax profits at a Shannon-based aircraft engine leasing firm last year increased by 49% to $47.68m (€35.3m).
Accounts just filed to the Companies Office show that US-owned Shannon Engine Support Ltd increased its pre-tax profits by $17.68m from $32m to $47.68m in the 12 months to the end of December last.
The increase in profits came as revenues increased by 31% from $95.47m to $124.75m last year.
According to the directors’ report “overall turnover increased by 31% primarily driven by the release of deferred revenues for a portfolio acquisition. Activity pertaining to aircraft engine leased dropped marginally.
The directors state that the pre-tax profit “represents a margin of 40.7% on its revenues which remains in line with the prior year”.
Operating profit also increased by 47% from $26m to $38.4m. The profit takes account of $58m in non-cash depreciation charge.
Established in 1988 and part-owned by US giant, GE, Shannon Engine Support provides support to 140 airlines.
However, profits were boosted by an exceptional profit of $8.39m made from the sale of fixed assets and this followed a profit.
Accumulated profits were $510m at the end of December last. Total shareholder funds of $827.6m at the end of last year included ‘other reserves’ totalling $308.5m.
The directors say they expect the general level of activity to continue for the foreseeable future.
They add: “Turnover for future years will depend on utilisation and lease rates. Utilisation will be determined by airline demand for spare engine capacity. The directors continuously monitor the company’s exposure by measuring utilisation and lease rate levels of the company’s assets and implementing portfolio strategies as required.”
The company’s 24 staff each received on average $95,000 in salaries with the aggregate pay-out, including pensions, being $2.8m.
Directors’ emoluments decreased from $665,000 to $474,000. The company’s other direct operating costs last year reduced from $27.9m to $19.5m.
The company purchased $255.9m in fixed assets during the year and this followed a pay-out of $7.1m on similar items in 2011.
The groups’ turnover shows that aircraft engine support activities accounts for $92m with deferred revenue release in relation to maintenance costs amounting to $29m with engine management services totalling $2.6m.
© Irish Examiner Ltd. All rights reserved