PFH Technology Group, the Cork-based managed software services business acquired by Japanese tech giant Ricoh last summer, paid out more than €18 million in dividends to shareholders in the 12 months leading up to its sale.
The group, one of the largest digital infrastructure companies in the State, generated revenues of close to €183.4 million in its 2023 financial year, accounts filed late last month reveal, 4.6 per cent ahead of the previous year across all of its business segments including data centres.
The filings cover the 12-month period to the end of June last, the same month in which Ricoh’s acquisition of the Irish group for an undisclosed fee was finalised.
In the 12 months before the acquisition, after-tax profits at PFH declined by about €10 million to almost €4.3 million.
In a report attached to the accounts, the group’s remaining Irish directors said higher payroll costs – which jumped by 15 per cent to €42.3 million in the year, inclusive of wages, social insurance and pensions costs – and “generally higher costs” over the year contributed to the drop-off in profits.
PFH also paid out some €18.2 million in dividends to shareholders in the year, up from €7.4 million in the previous 12 months.
“The group’s focus remains to be the leading loT [internet of things] supplier of choice in our chosen markets and to continue to expand the range of services that we provide,” the directors said.
“The group has benefited from strong demand in the marketplace, partially driven by what appears to be a permanent shift to hybrid working, an increase in clients’ digital transformation projects, but mostly from a strong focus on selling more of our solutions and services portfolio in to existing customers as well as growing the client base year-on-year,” they said.
[ Japanese tech group Ricoh completes deal for Cork business PFHOpens in new window ]
Formed in the 2006 merger of two of the Republic’s leading computer services firms – PFH Computers and CK Business Electronics – the group employed some 714 people in the year to the end of June last at its offices in Cork, Dublin and Galway.
Printing and digital offices services giant Ricoh, meanwhile, has been in expansion mode in Ireland over the past five years, having announced plans in 2017 to invest €6.5 million in its business here.
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