Profits fall 80 per cent at Dublin Aerospace hit by Covid

The operating profits of the expanding Dublin Aerospace collapsed last year by 80 percent to 160,924 euros.

New accounts show the aircraft maintenance firm saw operating profits fall sharply as revenue fell 14 percent in the 12 months to the end of September, from €42.8 million to €36.8 million.

Directors say they are pleased with performance given the significant challenges faced by the airline industry since the outbreak of Covid-19, despite the company falling short of budgeted revenue targets over the past year.

The company “continued to generate earnings after the year-end based on unaudited management accounts,” according to the directors

The company posted pre-tax profit of €6.6m last year, although this is skewed by €6.59m in ‘other operating income’, which mainly consists of Covid-19 wage subsidies reported in profit and loss Company income statement appear.

During the year, the company’s new 70,000 square foot landing gear facility was completed, doubling the company’s capacity to 350 “legs” per year.

Dublin Aerospace’s subsidiary, Exeter Aerospace, received regulatory approval to repair a number of aircraft “and successfully commenced trading”.

The company has also partnered with Honeywell International Link to become a distributor, and directors state that “all three key developments further position the company for the future.”

During the pandemic, Dublin Aerospace retained all employees with no layoffs, pay cuts or layoffs to allow the company “to respond quickly when our customers resume operations”.

Directors explain that the Covid-19 wage subsidy not only supports jobs and wages, “they have also given us the confidence to hire 45 more aircraft engineering trainees during the pandemic to meet our future catering needs”.

Net income includes non-cash depreciation of €1.2 million and leasing costs of €1.62 million.

Dublin Aerospace’s workforce increased from 377 to 392 as staff costs totaled €15.8 million. The company has 73 trainees. Key executive salaries totaled €2.24 million last year – down from the €2.6 million paid out in 2020.

At the end of September last year, the company had shareholder funds of €33.28 million, including accumulated profits of €26.69 million. The company’s cash and cash equivalents fell significantly from €9.07 million to €2.6 million7m.

https://www.independent.ie/business/irish/profits-tumble-80pc-at-covid-hit-dublin-aerospace-41921766.html Profits fall 80 per cent at Dublin Aerospace hit by Covid

Fry Electronics Team

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