Newcourt's first-half profits reach €5.24m

Support services and recruitment company Newcourt Group more than doubled its pre-tax profits in the first half of this year to €5.24 million.

In the six months to the end of June, Newcourt's pre-tax profits increased by 108 per cent while revenues rose by 45 per cent to €65.8 million. This was driven by strong organic growth and a modest €330,000 contribution to turnover from two acquisitions - CCM Recruitment and Aldborough Developments - during the six-month period.

Newcourt's security services arm, which operates on both sides of the Border, increased its revenues by 12 per cent to €35.6 million while its trading profit rose by 9 per cent to €2.5 million.

In a presentation to investors, Newcourt said its electronic security division had been restructured and was now profitable.

Ely Property, a subsidiary that manages student accommodation and property investments, recorded a trading profit of €3 million on revenues of €6.9 million. Ely, which was acquired by Newcourt in 2006, aims to have 2,000 student beds under its management by the end of 2008, compared with 1,700 now. Turnover at its recruitment division rose by 36 per cent to €14.5 million while the trading profit was €1.6 million, up 33 per cent on the same period of 2006.

Newcourt's aviation outsourcing arm achieved revenues of €3 million, an increase of 76 per cent. Its trading profit was €300,000 million.

In spite of the strong half-year results, Newcourt's share price fell by 1.4 per cent or two cent in Dublin yesterday to €1.40.