Profits at Newcourt double in 2006 as turnover grows 78% to €116.5m

Profits at security, recruitment and aviation services group Newcourt more than doubled last year, the company said yesterday. The Dublin and London-listed group said turnover in 2006 grew 78 per cent to €116.5 million, from €65.3 million the previous year.

Operating profits grew 121 per cent to €6.4 million, from €3 million over the same period.

Profits before tax were €5.7 million, a 155 per cent increase on the €2.2 million recorded in 2005.

Earnings per share (EPS) increased 64 per cent to 9.97 cent from 6.09 cent.

The group said trading profits were up 105 per cent at €11.2 million, of which €4.8 million came from companies it bought during the year. The biggest deal it completed was the takeover of student accommodation group Ely Property for €22 million. In all it spent €36 million.

The same purchases contributed €32.5 million to turnover.

Ongoing operations during the year generated a turnover of €83.9 million, an increase of 28 per cent.

Newcourt is an umbrella for a broad range of businesses. It grew out of the purchase of Federal Security in 2002 by chief executive Ted O'Neill and co-founder Phil Sykes, formerly of AIB corporate finance.

Its biggest focus is security, which accounted for close to €68 million of its turnover and €5 million of its trading profit last year. Recruitment contributed €24.4 million to the top line and added €3.3 million to trading profits.

Aviation outsourcing, which includes pilot recruitment and training, generated €4.1 million in turnover and €200,000 in trading profit.

Despite the high number of acquisitions Newcourt completed during the year, Mr O'Neill stressed yesterday that the group was focused on organic growth.

"We walked away from opportunities over the last few months because they were looking for too much," he said. "We're not into empire-building.

"We've proved that we can identify the targets, integrate them and bed them down."