Brinks’ cash services business returned to profitability last year with a pre-tax profit of €797,000 on cost cutting.
New accounts show that Brinks Cash Services (Ireland) Ltd has paid 6.7 million euros in severance pay during the pandemic as the workforce has fallen by 198 or 28 per cent over the period.
The company followed last year’s pre-tax profit of 797,000 euros with pre-tax losses of 5.72 million euros in 2020.
Before Covid, the company reported sales of €44.9 million in 2019 and sales for 2021 totaled €32.1 million – down 28.5 percent from pre-pandemic revenue.
Revenue in 2021 of €32.1 million was 5 percent below revenue of €33.9 million in 2020.
According to the Board of Directors’ report, “The company has had to adapt to a very challenging operating environment in the face of the Covid-19 pandemic, which has led to a reduction in the size of the company over the past two years”.
They explain: “Revenues have stabilized compared to last year and the company is now looking at opportunities to rebuild the business through technology solutions and digital payment offerings.”
The directors add that “the mix of services the company offers is evolving in line with customer needs, with outsourced cash management and technology-enabled solutions accounting for a higher proportion of revenue versus traditional cash-handling services.”
The report states that “management has continued to implement cost control measures.”
At the end of 2019, the company employed 705 people, which reduced to 507 at the end of last year. The company paid out 1.1 million euros in severance packages last year, after paying 5.6 million euros in 2020.
The company’s payroll costs last year totaled €13.27 million compared to €24.6 million in 2019 – a decrease of 46 percent. Management board salaries and pension contributions rose from €354,000 to €411,000 last year.
The company recorded an operating profit of €915,000 and interest expense of €118,000 reduced profit to a pre-tax profit of €797,000.
At the end of December last year, the company had shareholder funds of 4.7 million euros.
The company’s cash and cash equivalents fell from €23.8 million to €9.72 million.
https://www.independent.ie/business/irish/brinks-cash-ireland-back-in-profit-after-28pc-pandemic-workforce-cut-42249159.html Brinks Cash Ireland back in profit after 28 per cent pandemic workforce cut