Smartphone accessory maker PCH reports big increase in profits

THE GROWING popularity of smartphones and eReaders led to a 170 per cent jump in revenues at Cork-headquartered company PCH International last year.

Results for 2010 show that revenue at Amekab Ltd, the holding company for PCH International, saw turnover climb to $413 million (€289 million) in 2010, up from $153 million the previous year.

Pretax profit for the year came in at just under $16 million, up from $1.5 million in 2009, due to a combination of increased sales and a leveraging of the existing cost base, according to company accounts.

PCH International, founded by former entrepreneur of the year Liam Casey, is involved in the manufacturing and distribution of accessories for smartphones and electronic devices such as eReaders and tablets.

While its original focus was on the sourcing of product for clients, mainly from China, in recent years it has expanded its offering to include the design, manufacture and delivery of products.

It provides branded electronic accessories to some of the world’s biggest electronics companies.

Mr Casey said yesterday the business performed strongly to date in 2011 and would keep providing client-specific end-to-end offerings to its major clients.

It is also working with smaller start-up companies, focusing on app-enabled hardware. The capacity to leverage the company’s cost base while increasing production was one of the key factors behind its sharp rise in profits, he said.

Referring to recent speculation that the company is planning a flotation in Asia, Mr Casey said it was considering its funding options, which may include equity raising or further venture capital funding.

PCH secured $26 million in venture capital funding from two new private equity shareholders in 2010, following a round of funding in 2008. Mr Casey added that further funding plans may be announced by the end of the year.

Mr Casey remains the largest shareholder in the company, with a 42 per cent shareholding.

PCH International employs more than 1,300 people worldwide, with 960 in China. Twenty-five people are employed by PCH in Ireland.