Shannon Group sets aside €1.3m for redundancy scheme
The Shannon Group last year set aside €1.33m to finance a group-wide voluntary redundancy scheme and expects to incur additional costs in a further phase of the scheme this year.
The spend on the voluntary-redundancy schemes comes against the background of the group's Shannon Airport related aeronautical and commercial revenues dipping marginally last year from €37.76m to €37.37m.
The Shannon Group delivered overall growth of 2pc to €67.23m but this was only after revenues from tourism - which includes Bunratty Castle and Folk Park - increased by 13pc going from €13.57m to €15.38m.
Revenues from the group's property business enjoyed an increase from €14.2m to €14.4m.
The group last year recorded pre-tax profits of €7.26m which takes account of non-cash depreciation charges of €4.2m.
A note attached to the accounts state that additional charges are expected to arise in 2017 in respect of a further phase of the voluntary-redundancy scheme.
The group yesterday wasn't able to specify the numbers that have opted for redundancy but a spokesman said: "We have engaged with staff on a range of proposals to reduce our cost base to ensure we remain competitive in the international marketplace. As part of this we launched a voluntary-severance scheme and we are in discussions with staff about voluntary exits later in 2017."
At the end of last year, the group was debt-free and had cash of €25.7m. The group last year spent €14.8m on capital projects.
Former CEO Neil Pakey resigned from the board in June of last year and was replaced by Matthew Thomas. Their pay during the year totalled €243,172 including pension contributions.
The board members of Shannon last year received €111,375 in fees including chairman of the Shannon Group, Rose Hynes who received €21,600 for her work with the group.
In her report, Ms Hynes stated that "while Shannon Group achieved a solid performance in 2016, further work is required to ensure continued business improvement by creating cost efficiencies across group companies".
The group employs 499 people with salary costs of €23.4m.