Higher costs result in steep decline in profits at Parc Aviation
Pre-tax profits at Parc decline by 31% to €2.6m but revenues up by 5% to €141.3m
Then minister for jobs Mary Mitchell O’Connor opening CAE Parc Aviation’s offices here.
Higher costs last year contributed to pre-tax profits at Parc Aviation declining by 31 per cent to €2.59 million.
However, accounts show that Parc Aviation Ltd’s revenues increased by 5 per cent to €141.27 million in the year to the end of March 2019.
The main activity of the company is the provision of aviation-related services to clients around the world. These include the recruitment and supply of specialist aviation personnel, technical, engineering and aircraft movement services.
The directors state that the company recorded an increase in the volume of business, which resulted in the rise turnover.
Profits were hit as “there was heavy investment in overheads to enable the company to continue this growth in future years and to meet customer demands”.
Numbers directly employed increased from 107 to 110 as staff costs totalled €6.14 million. Pay to directors increased by 22 per cent from €588,000 to €720,000 and the chief factor was €208,000 for “other termination payments”.
On its outlook, the directors state that the company plans to expand through a mixture of new clients and increased product offerings with the objective of consolidating its position as the leading supplier of specialist staff and services to the aviation sector.
The former Aer Lingus subsidiary was part of the Oxford Aviation Academy that was purchased by Canadian group CAE in May 2012. The accounts show that Parc paid a dividend of €4 million to CAE last year, the same level as in the previous year.
Accumulated profits at the end of last March totalled €6.5 million following the dividend payout.
The company’s operating lease costs increased from €453,000 to €632,000. Its net operating costs of €140 million were last year made up of €129.8 million in contractor costs, €6.1 million in staff expenses, and €4.36 million in other charges.