A number of Irish technology companies will have annual revenues in excess of £100 million within the next three years, predicted Mr Dan Flinter, the chief executive of Forbairt, the agency charged with developing indigenous industry. Mr Flinter said it is now possible to envisage major growth within a very short time frame for a number of young "fast growth or knowledge-based" Irish companies serving world markets.
He said such companies will be the next wave of home grown multinational companies. "This would have been seen as highly improbable a few years ago, but it is now a reality due to the new breed of Irish entrepeneur which has emerged."
Mr Flinter was speaking at Forbairt's mid-year review. The agency said that by the end of 1997, Irish firms will have created 12,000 jobs since Forbairt was set up three years ago. The agency said the target is two years ahead of schedule and reflects the new level of confidence underpinning record economic growth.
Last year Forbairt assisted companies to create 12,127 new jobs, representing a net increase of 4,780. Forbairt said last year was an exceptional one for Irish industry and this has continued into 1997. "From contacts with client companies there are clear indications of increased levels of investment commitments, strong growth in sales, while employment growth is running at least as strongly as last year," Forbairt says in its review.
Sales by Irish companies were up 8 per cent and totalled more than £13.5 billion, while Forbairt itself had invested £102 million in client companies. Forbairt's chairwoman, Ms Eileen O'Mara Walshe, said yesterday that employment was growing partly due to the strong economy and also to strong research and development investment. Such investment totalled £160 million last year, double the figure in 1992.
The agency is predicting a net increase of 5,000 jobs for the current year. It said business confidence remains strong. By the end of June, Forbairt had approved support for 52 major new projects. It had also approved 216 feasibility studies.
Forbairt said client companies committed to invest over £450 million to build capacity and boost sales. Of this, Forbairt's financial commitment was £102 million. This included providing support for equity and capital investment, research and development, management development and feasibility studies. Mr Flinter said Irish companies are increasingly looking beyond the "limited horizons" of the domestic market for growth and are willing, not only to expand into overseas markets, but also to make acquisitions within them. He said the agency was reviewing its own investment strategy to ensure it meets client needs, gives a return to the Government and is compatible with best practice in the industry.
