NCT operator tests more cars than ever

The firm that operates the National Car Test (NCT) last year clocked up a weekly revenue of over €1.44m as more cars than ever before were tested.

New figures show that Spanish firm Applus enjoyed a €10.5m jump in revenues to a total of €74.94m due to an increase in the number of tests and retests that the company carried out last year.

Figures provided by Applus show that the number of tests and retests last year jumped by 13.5%, rising from 1.78m to 2m.

The number of tests increased by more than 200,000, going from 1.17m to 1.344m while the rise in the number of retests after fails was smaller, going up almost 70,000, from 614,035 to 682,365.

The lower rate increase in retests followed the NCT failure rate last year reducing from 53% to 51.2%.

However, the increased business for Applus did not translate into higher profits for the firm as operating profits decreased by 7.5%, from €4.2m to €3.89m.

This was as a result of the company’s costs increasing by almost €11m to €71m.

The price of an NCT is €55 with a retest costing a car owner €28.

The most up-to-date figures for 2015 show that Applus is on course to record its busiest year yet with 1.6m tests and retests for the first eight months to the end of August. If the number of tests continue at the same rate, Applus will record some 2.4m tests and retests this year.

The NCT was introduced in 2000 on foot of an EU directive.

Applus secured the 10-year contract for the NCT in 2009, commencing testing in January 2010.

Applus today provides the NCT from 46 centres across the country.

The success of the contract last year contributed to the firm paying a €3.7m dividend, which followed a dividend payout of €4.4m in 2013.

According to the Applus directors’ report for 2014, the number of vehicles tested last year was ahead of the company’s 10-year business plan in 2014, while productivity has improved marginally over 2013.

The directors of Applus said they consider the results for the year to be satisfactory, adding that “future growth is expected to come from core-related vehicle inspection and associated road safety activity”.

In order to cope with the increased demand on its services, Applus last year increased its workforce by 115, from 655 to 770, and the directors state that they will employ an additional 25 this year.

The firm’s staff costs last year increased by €5m, going from €23.9m to €28.5m.

The figures, which were lodged with the Companies Office, show that another major contributor to the increase in profits last year was the €542,246 of finance income.

Applus’s pre-tax profits reduced by 1.5%, falling from €4.49m to €4.43m.

Remuneration for the firm’s directors last year totalled €273,383.

A breakdown of the Applus revenues show that €70.42m was generated from the NCT, with €2.3m from the VRT Import Conformance Inspection and €2.12 from ancillary revenues.

The firm’s retained earnings at the end of December last stood at €6.8m. The accounts show that after paying corporation tax of €645,731, Applus recorded after-tax profits of €3.78m.