Shannon Aerospace seeing more competition
Published 23/07/2014 | 02:30
Pre-tax profits at the Shannon-based aircraft maintenance firm, Shannon Aerospace, last year increased six-fold to €1.69m.
According to new accounts filed with the Companies Office, revenues at at the Lufthansa-owned Shannon Aerospace Ltd increased by 27pc going from €56.5m to €71.69m in the 12 months to the end of December last.
The directors' report states the 27pc increase in revenue was due to higher volume and heavier maintenance events.
The directors caution that the company's competitors are increasing, particularly in Eastern Europe and the Middle East where labour costs are significantly lower than in Ireland.
The report states: "Management continues to focus on reducing the cost base of the company to allow it to compete for maintenance contracts with competitors from low cost Eastern European countries."
Earlier this year, the firm closed its defined benefit pension scheme, sparking a dispute with SIPTU.
The accounts show that the net pension deficit at the end of December 2013 had decreased to €15.69m from €17.79m.
The firm is replacing its pension scheme with a defined contribution scheme and "management are currently in negotiations with the company's workforce regarding the structure of the new scheme".
The numbers employed by the firm decreased marginally from 487 to 484.
The firm's shareholder funds at the end of December last year stood at €14.96m.
Staff costs last year increased from €23m to €25.1m.