USIT, the student travel company, pushed pre-tax profits up by 115% last year to €2.14 million despite a significant fall in ticket sales.
USIT, which celebrated 50 years in business in 2009, slashed administrative costs in the year ended October 2009, according to its latest set of accounts just filed with the Companies Registration Office. USIT, headquartered at Aston Quay, Dublin, has 10 retail travel offices. It also operates the USIT accommodation centre in University College Dublin, known as UCD Village.
The company’s performance in 2008 comes after it was rescued from examinership in 2002 in the wake of the September 11 attacks in 2001.
The company, which services the student, youth and independent travel market, has sales staff who speak Russian, Slovak, Czech, Italian, Dutch, French, Chinese, Thai and Laotian.
USIT’s turnover fell from €9.9m to €9.67m over the 12 months, while administration costs fell from €4.26m to €33.3m in the year under review.
Turnover on travel sales is recorded at the margin earned on the sale rather than the amounts invoiced to customers. Gross turnover was €39.42m in 2009, down from €50m in 2008. Operating profits increased by 33% to €2.98m (2008: €2.25m).
Commenting on the performance the directors said: “This is an excellent result in the current economic climate.”
Directors’ remuneration was cut from €350,000 in 2008 to €300,000 in 2009.
The company cut jobs during the year to 92 from 110 which resulted in staff costs falling to €4.54m from €5.4m in 2008.
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