RDS profits rise 47% to £757,000 as membership slips again

THE Royal Dublin Society (RDS) has recorded strong growth, with a 47 per cent rise in profits from £520,000 in 1994 to £757,000 in 1995.

The number of members in the society continues to fall. However, there were 300 new members and the revenue from membership jumped from £194,000 to £316,000.

Chairman Mr Michael Jacob said the society hoped to submit a new proposal to Bord Failte by July on the siting of a National Convention Centre at the RDS.

A previous tender process, based on a 50 per cent grant, was not successful and the society has now been invited by Bord Failte to submit proposals as a public body that will enjoy a higher grant threshold of 75 per cent.

The RDS could easily finance the project and does not envisage gearing above 50 per cent, he said. If the £25 million project gets the green light, the development would take two years to complete.

The RDS sees the development as very appropriate for the society as it is already in the conference business, it owns the land and many of the services are already in place.

The exhibition business in 1995 "remained buoyant", resulting in larger bookings and new events said chief executive Mr Shane Cleary. Income from commercial lettings of its Ballsbridge facilities increased by 23 per cent to £2.29 million. The renovated Main Hall provided the venue for the enlarged Bank of Ireland/RTE Proms.

Revenue from the new Shamrock Rovers FC and the Rod Stewart and Bon Jovi open air concerts "contributed greatly to the income for the year", he said.

There was a continuing upgrading of its equestrian facilities The developments have been funded from internal sources.

Total income generated by the society increased from £3,592,000 to £4,162,000. The year also saw an increase in the return from investments from £216,000 to £273,000. Investment income accounts for 36 per cent of profits. A healthy trend has been the reduction in the cost/income ratio from 92 per cent to 88 per cent.

The number of members fell from 7,802 to 7,375. A majority of members are life members, where numbers fell from 3,952 to 3,808. The number of annual members dropped from 3,248 to 3,023.

Mr Jacob said the society was "very confident for 1996". The past year saw good repeatable business and this trend was expected to continue.

He noted the drop in the cost/income ratio but stressed that profit growth would come "more by driving" revenue.