Dell Ireland pays out $172m dividend to Dutch-based parent
Newly-filed accounts show ownership of Dell Direct transferred to another Irish unit
Accounts recently filed for Dell Direct show it made the dividend payment ahead of being acquired by fellow group company Dell Products for $18.5 million
One of Dell’s largest Irish subsidiaries paid a $172 million (€150 million) dividend to its Dutch parent entity in 2017, a year in which its ownership was transferred to another Dublin-headquartered unit.
Accounts recently filed for Dell Direct, which employs more than 900 people locally, show it made the dividend payment ahead of being acquired by fellow group company Dell Products for $18.5 million.
Dell Direct, the computer giant’s Cherrywood-based sales and support operations unit, recorded profits of $3.9 million as against $3.6 million due to a fall in expenses linked to the transfer to Dell Products.
Turnover declined 11 per cent, from $129.4 million to $115.2 million with revenues derived from the provision of sales and marketing services to group companies.
Employee numbers declined from 1,107 to 936 with staff costs, including wages and salaries, falling from $494 million to $78.1 million.
Separate accounts for Dell Products, which sells and distributes the group’s products in Europe, the Middle East and Asia (EMEA), show revenues rose 8.5 per cent to $12 billion from $11.1 billion last year. Pretax profits rose to $20.4 million from $5.3 million over the same period.
The subsidiary employed 919 people, up from 846 a year earlier with staff costs, rising from $81.6 million to $103.2 million.
The latest accounts show the company has received cumulative grants from IDA Ireland of $19 million for employment purposes and has also gained R&D grants from the State body worth $2.9 million.
The net assets of Dell Products were $66 million at the end of the year, as against $99 million in 2017.
The company paid dividends of more than $23.5 million to fellow group companies during 2017.