Loyaltybuild rewarded with 27.5pc jump in pre-tax profits
Pre-tax profits at Co Clare-based customer loyalty rewards firm, Loyaltybuild, increased by 27.5pc last year to €4.3m.
The US-owned company secured the increase in pre-tax profits after revenues at the firm rose by 3pc from €9.5m to €9.8m in the 12 months to the end of December.
In 2008, three Co Clare businessmen who co-owned the firm bucked the recession when they sold the firm to US group Affinion for €25m.
It is understood that founder and chief executive Dominic Considine; aircraft leasing financier Domhnal Slattery; and developer and hotelier Sean Lyne received half of the proceeds up front. The balance was to be paid over a number of years, based on the firm meeting certain targets.
As a 70pc shareholder, Mr Considine was the biggest beneficiary, pocketing about €8.5m up front from the sale. Mr Lyne, who owned 25pc of the business, earned about €3m initially, while Mr Slattery received about €600,000.
New accounts filed to the Companies Office, showed that Loyaltybuild -- established in 1999 -- paid a dividend of €8.2m last year. The figures showed that pre-tax profits increased from €3.4m to €4.3m.
The accounts show that Mr Considine remains as a director of the firm and the directors' report states that "the company intends to continue to expand its activities in the coming year both within its existing markets and through the development of strategic partnerships".
The company's revenues represent commission received on bookings made on discounted holiday packages for customer loyalty programmes. After the dividend payout, the company's accumulated profits were reduced to €679,663.
The accounts show that the company cut the numbers employed by 11 to 49, with staff costs falling by 9pc from €2.7m to €2.5m.
The figures show that payments to directors last year were €80,027 -- down from €211,954 in 2009.
The company specialises in hotel breaks. Its website says that more than 3.1 million Europeans have availed of the company's reward breaks and it has helped major companies achieve their 'loyalty-build' objectives, generating over €1.75bn.
Based in Connecticut, Affinion was founded in 1990 and now employs 3,000 staff across the US and Europe.