UCI Irish division reports 14% rise in pre-tax profits

Profits at the Irish subsidiary of the UCI multiplex cinema chain rose 14 per cent to €5.6 million in 2003, current returns to the Companies Registration Office show.

United Cinemas International (Ireland) Ltd posted a turnover of €21.3 million for the 12 months to December 31st, 2003, a slight fall on the previous year's sales of €21.5 million.

However, a €551,000 fall in the cost of sales and a €320,000 drop in administrative expenses boosted operating profits in 2003 to €5.7 million from €5 million the previous year.

The fall in expenses contrasted with 2002, when the cost of sales grew by €2.3 million, eating into most of its increase in sales for that year.

Pre-tax profits for 2003 were up 14 per cent to €5.58 million from €4.87 million in 2002. The group had a tax credit of €471,000, leaving it with profits for the year of just over €6 million.

In common with the previous year, the company paid a €5 million dividend to its shareholders, Netherlands-based United Cinemas International Multiplex and United International Multiplex.

It retained a €1.05 million profit for the year, bringing its profit and loss account to €10.28 million compared with €9.23 million in 2002. Shareholders' funds stood at €11.77 million at the end of 2003, up from €10.72 million the previous year.

The balance sheet shows that the company had €516,000 in the bank at the end of the year, compared with €1.3 million 12 months previously.

It also shows that the company had debts of €9 million that fell due by the end of 2004. According to a note to the accounts, its ultimate parent, Cinema International Corporation (CIC), extended that facility to UCI. That money, in turn, came from loans raised by CIC which were due by the end of 2004. The note states that UCI's directors expected CIC to have renegotiated that facility by the end of last month.

Staff numbers fell to 124 from 133 the previous year. This resulted in a saving of €24,000 in employee costs, which fell just short of €3.03 million.

UCI operates multi-screen cinemas in the Dublin suburbs of Blanchardstown, Coolock and Tallaght. Between them, they have 29 cinema screens.

The group is a partnership between US film and television production and distribution company Viacom and Universal Studios.

It has more than 1,000 screens at 106 sites around the world and employs 6,500 people. It has 35 complexes in the UK and has a presence throughout Europe, as well as Taiwan, Japan and Brazil.

The Republic is a profitable location for global cinema chains. It has one of the highest rates of attendance in Europe. Admissions for 2003 topped 16 million.