Saturday 25 February 2017

Sun shines for travel firm as profits soar to €4.4m

Gordon Deegan

Club travel's success over the years has allowed it to build up a cash pile which rose to €41.2m last year.
Club travel's success over the years has allowed it to build up a cash pile which rose to €41.2m last year.

Pre-tax profits at the Government's preferred travel agent and the country's largest independently owned travel firm, Club Travel, soared by 53pc to €4.45m last year.

Revenues rose from €88.22m to €117m in the year to the end of October last. The accounts show that during the year, company founder and one of the founders of Ryanair, Liam Lonergan, received the vast proportion of the €1.13m dividend paid out last year.

The company's success over the years has allowed it to build up a cash pile which rose to €41.2m last year. The firm received €789,504 in interest alone last year.

"We were very pleased with last year's result which not only reflected a general improvement in both consumer and corporate sentiment, but also a growth in our customer base," said director Colman Burke.

"Sales in retail and corporate were both over 30pc up. Our Budget Travel and BudgetAir brands performed particularly well, while on the corporate side of the business, we enjoyed a high customer retention rate but also increased our market share.

"Last year was very good and we will be happy if we can match or improve slightly on it. We believe the current uncertainty on the formation of a government plus recent terrorist attacks have dampened demand but we remain optimistic."

The directors' report says they consider profitability levels may reduce in the future due to a combination of growth in generally available online facilities for customers and falling interests rates on deposits. Numbers employed rose from 140 to 155 and staff costs last year rose by 10pc to €5.1m.

Irish Independent

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