Pre-tax profits at NCB fall by massive 93pc
Published 29/09/2010 | 05:00
Pre-tax profits plunged by 93pc at NCB last year for the second year in succession as the stockbroker continued to be affected by the ongoing turmoil in financial markets.
In accounts just filed with the Companies' Office, they show that NCB Group Ltd and subsidiaries' pre-tax profits dropped by 93pc -- from €956,000 to €66,000 -- to the end of November last.
The sharp decrease in pre-tax profits follows a similar 93pc drop in pre-tax profits in 2008 where pre-tax profits dropped from €13.5m to €956,000. The drop in pre-tax profits last year followed the company's revenues decreasing by 29pc from €38.8m to €27.4m.
Businessman Sean Quinn has just under a 25pc share in NCB, with management and staff having the majority shareholding.
Commenting on the results, a spokesman for NCB said yesterday: "NCB's response to the unprecedented market conditions that prevailed in 2009 ensured that the firm emerged in a very strong financial position.
"At year end, NCB had no debt, net assets of over €38m and cash balances of €17.3m."
The group -- with offices in Dublin and London -- generates its revenues through fees from the group's businesses of stockbroking and corporate finance.
NCB has operations in corporate finance, wealth management, institutional equities, bonds, venture capital and funds listing.
The accounts show that during the year the group reduced its operating costs by 28.5pc from €39.6m to €28.2m. In the 12 months, the group recorded an operating loss of €798,000 -- an increase of 8pc on 2008.
However, investment revenues of €1m wiped out the loss to record the pre-tax profits of €66,000. Staff numbers were cut at the firm last year by 25 to around 140, with the remaining staff invited to voluntarily take a pay cut of up to 20pc, and win back the difference based on their performance. The figures also show that emoluments for its seven directors dropped by 32.5pc from €2m to €1.3m.