Leading ad agency reports sales of €23.7m

Turnover and profits have fallen at the advertising agency Irish International, according to accounts lodged with the Companies Office.

The company, which has a large number of bluechip clients, posted turnover from continuing operations of €23.7 million for 2004. While this was one of the highest figures in the industry, it was down on 2003 when turnover was €25.9 million.

The company, which was ultimately owned by New York-based Omnicom group during the period, is a full service agency offering creative work and media buying/planning skills to its clients.

According to the accounts gross profit at the company fell from €4.2 million to €3.5 million, while operating profits were down from €265,109 to €172,903, a fall of 34 per cent. Pretax profits slipped from €1.7 million to €193,414, although the 2003 figure had been boosted by dividends receivable.

The company had retained profits at the end of the year of €1.1 million, while current assets stood at almost €13 million.

According to the accounts directors' remuneration stood at €786,166 in 2004. There were four directors at the company in the period under review. The company employed 98 people during 2004, down from 100 the year before. Most of the staff worked in administration or production. Total payroll costs for the staff amounted to €7.1 million, up from €6.9 million the year before.

In the accounts the directors summarise the company's position for 2004: "Performance for the year was strong and the directors are of the opinion that the prospects for further continuing growth remain positive."

The advertising business in Ireland is highly competitive with margins in the media-buying area under significant pressure. Most of the major agencies are now owned by large multinationals, based either in Britain or the US. It is becoming increasingly difficult for small Irish-owned agencies to survive because they often cannot avail of the large discounts offered by internationally affiliated groups.