Club Travel flying high as profits rise by 48pc to €6.5m
Pre-tax profits at the Government's travel agent and the country's largest independently owned travel firm, Club Travel, last year soared by 48pc to €6.58m.
Revenues at Club Travel Ltd increased by 13pc, from €117.49m to €132.8m, in the year to the end of October last.
One of the co-founders of Ryanair and founder of Club Travel, Liam Lonergan, said yesterday that the company was "happy with the 2016 results".
He said: "There is no magic formula. You work hard and you hope it works."
Mr Lonergan said that the increased revenues and profits were as "a result of a combination of improved efficiencies due to better technology plus a positive contribution by Abbey Travel."
He added: "If you don't have your technology in order, you may as well throw your hat at it. Our investment in technology continues to improve our efficiency in what is a very competitive environment."
Mr Lonergan said that the company's "corporate business continues to be strong and clients are spending more".
The firm is the Government's travel agent and the company successfully re-tendered for the Government contract earlier this year. Mr Lonergan also confirmed that the company has been appointed as the exclusive Irish agent for the 2019 Rugby World Cup in Japan.
The company last year paid out dividends totalling €542,803.
Its success over the years has allowed it to build up a massive cash pile. It rose from €41.24m to €47.2m.
The firm last year received €444,280 in interest alone and this added to the operating profits of €6.1m.
The directors' report said they consider that profitability levels may reduce in the future due to a combination of growth in generally available online facilities for customer and falling interests rates on deposits.
The directors added that the company continues to explore new business opportunities. Numbers employed increased from 155 to 174 and staff costs last year increased from €5.17m to €6.18m.
The profit last year takes account of non-cash depreciation costs of €112,064.
The company has three directors, Liam Lonergan, Helen Lonergan and Colman Burke, and aggregate remuneration last year increased from €377,996 to €423,585.
The firm's shareholder funds totalled €50.3m that included accumulated profits of €46.4m.