Prestigious IMI management training centre losing money
IRELAND'S training centre for business leaders has lost millions, its books show.
The Irish Management Institute (IMI) lost €5.24m according to its 2010 accounts, which it has just recently filed. Cutbacks on training courses by companies meant slashed revenues at IMI, back to just €7m from over €14m in 2007.
"We've suffered a more than 50 per cent decline in the recession, our revenue was turned off like a tap," chief financial officer Fintan Meagher said.
"We have been slower to reduce costs than decline in revenue but we are managing the costs down."
Notable past IMI directors include former AIB boss Eugene Sheehy, ex-ESB chief Padraig McManus and former Eircom chief Philip Nolan.
Current council members include Iona founder Chris Horn, Maxol CEO Paul Cran, HP boss Martin Murphy and Microsoft MD Paul Reillis.
Staff costs were €4m -- eating into over half the IMI's €7.4m income, but there has since been a major redundancy programme. The trading overall deficit was €1.64m.
Plummeting property price values obliged IMI directors to register an impairment of €1.8m on the value of its properties. A merger with UCC was put on hold due to a massive €12.3m pension liability issue, which has now been tackled, Fintan Meagher said.
Other steps were being taken to bring down losses. "Staff costs have continued to reduce, there have been no salary increases since 2007."
Meagher pointed to the high fixed costs of running the campus, including €400,000 year in rates.
"2012 will show a healthier picture," he said.
Sunday Indo Business