Paddywagon profit declines 40% on higher operating costs

Higher operating costs at tour company Paddywagon resulted in pretax profit declining by 40 per cent from €1.22 million to €739,095 in the 12 months to the end of last October.

Some 250,000 tourists travelled on Paddywagon last year, contributing to a 10 per cent rise in revenue to €12.38 million.

The business has 60 coaches in service and founder Cathal O’Connell said on Monday that revenue increased last year “due to expansion of routes, increase in number of tourists and significant improvement in marketing and logistical aspects of our business through experience”.

The company has continued on its upward curve this year with passenger numbers up 15 per cent in the year to the end of June compared with the corresponding period in 2018-2017.

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Mr O’Connell attributed the decline in profit last year to increased costs in wages and administration.

The company’s costs made up of sales and administrative expenses last year increased by 16 per cent from €9.89 million to €11.48 million.

The profits last year also take account of interest charges of €152,325.

Numbers employed last year increased from 110 to 119 with staff costs increasing from €2.77 million to €3.14 million.

Depreciation costs

The firm’s profits take account of non-cash depreciation costs of €1.16 million. Directors’ pay last year remained static at €150,000.

Mr O’Connell said the company’s plan was to bring in all-electric buses to do day tours within range of Dublin.

At the end of October last, the firm’s accumulated profit stood at €3.4 million – during the 12-month period the firm’s cash pile increased from €2 million to €2.1 million.

The business last year continued its expansion as it paid out €1.2 million for new assets and this followed a payout of €579,480 under the same heading in 2017.

The company last year recorded a post-tax profit of €624,550 after paying corporation tax of €114,545.