Business Irish

Tuesday 21 May 2019

Clare FM increases pre-tax profits by 19pc to €388,000

Gordon Deegan

Clare FM last year increased its pre-tax profits by 19pc to €338,000, new returns to the Companies Office show.

The accounts for Clare Community Radio Holdings plc show the station now has accumulated profits of €981,000.

Earlier this year, the station was on the verge of being sold to Radio Kerry in a €7.2m deal which was set to provide a major windfall for its shareholders.

The offer by Radio Kerry valued individual shares at €20 each -- almost 20 times what shareholders paid for the shares in the late 1980s and early 1990s.

However, the deal fell through and the station told shareholders last April that a statement was imminent on why the deal collapsed, but the shareholders have yet to be given the reasons why.

One of the signatories to the accounts is station chief executive Liam O'Shea, who was set to receive €407,300 through his 20,365 shares in the deal.

The accounts for 2007 show that the company increased its turnover from €1.9m to €2.1m through advertising revenue, while operating expenses increased from €1.6m to €1.7m.

The directors' report attached to the accounts state that the "principal risk to the company is to lose market share and, as a result, miss an opportunity to achieve planned sales growth with its knock-on effect on net income".

"However, the board has adopted appropriate strategies to help it meet the ongoing challenge of maintaining and increasing listenership numbers and achieving the resultant advertising and sponsorship revenues."

The accounts also show that there were one-off 'reorganisation costs' last year of €37,500. The accounts show that Clare FM has shareholder funds of €1.5m.

The returns show that the company employed 32 people last year -- an increase of one on the previous year.

The accounts reveal that staff costs last year increased 7.7pc from €860,000 in 2006 to €927,000. Staff costs include all remuneration of directors.

The accounts also show that the station had dividend income last year of €86,000, while it also recorded a loss of €53,000 on financial assets. The directors' remunerations increased last year from €130,000 to €160,000.

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