Luas firm on course for loss of over €870,000 this year
Published 05/11/2015 | 02:30
The company that operates the Luas tram system in the capital is on track to lose more than €870,000 this year.
Transdev Dublin Light Rail has been battling a pay claim from its drivers, who have been seeking wage increases of up to 40pc in order to bring their salaries in line with those of Irish Rail drivers.
But Transdev has insisted that it can't afford the increases and is on track to make a loss this year.
Newly-filed accounts for Transdev Dublin Light Rail show that the company's pre-tax profits fell 34pc in 2014 to €872,000. It means its performance will have to have deteriorated significantly this year in order for it to post the predicted loss.
The accounts also show that revenue at the company fell 14pc to €48.8m last year from €56.7m in 2013. The company also paid a €1.2m dividend to its French parent company last year, down from €1.6m in 2013.
The company blamed different billing structures within its new contract with the Rail Procurement Agency (RPA) for the declines in revenue and profits.
Its previous contract to operate the Luas expired in September last year but it secured a new five-year contract.
"While profitability is lower under the terms of the new contract, it is the intention of the directors to continue to develop the current activities of the company," the accounts note.