Done Deal back in the black with €12m trade
The company behind the counrty's largest online classified website, Done Deal, last year returned to profit as revenues jumped to €12m.
New accounts show that Done Deal Ltd recorded pre-tax profits of €1.58m after sustaining a pre-tax loss of €2,250 in 2015.
It recorded the return to profit after revenues increased by 15pc, from €10.5m to €12.12m. The company since year end has paid out dividends of €573,259.
According to the directors' report, the increase in revenues during the year was in line with management expectations.
The directors said pre-tax profit rose due to an increase in revenues and a decrease in administrative costs as it continues to drive efficiencies.
Administrative costs reduced from €10.4m to €9.5m. The firm also made charitable donations of €209,176 last year and charitable donations of €206,517 in 2015. Revenues have increased from the €8m recorded in 2013.
The website was established in 2004 by husband and wife team Fred and Geraldine Karlsson. The founders were inspired to set up the site after returning to Ireland from Sweden where they had used similar websites.
Initially the ads included their own belongings, before real users started placing ads. They were bought out by Norwegian firm Schibsted Media. Today, the website is part of the Distilled SCH group after Schibsted Media and Distilled Media merged their Irish operations with Done Deal operating under the same banner as daft.ie and adverts.ie
The Distilled Media Group - established by the founders of daft.ie, Brian and Eamonn Fallon - and Schibsted Media each has a 50pc shareholding in the venture.
The profit takes account of €406,827 in restructuring costs and this followed €108,420 in restructuring costs in 2015.
The profit also took account of non-cash impairment of a financial asset totalling €606,652.
Numbers employed last year were static at 56 with staff costs of €3.6m. A breakdown shows that 22 were engaged in sales and customer support; 18 in administration and finance; and 16 'technical' staff. Shareholder funds at the end of 2016 totalled €3.35m, including €2.3m in accumulated profits.
The cash pile last year rose from €674,370 to €2.64m. The company recorded a post-tax profit of €1.29m after paying €287,513 in corporation tax.
The directors remain confident about the business given the trend of advertising spend moving to online media and adoption of new formats to meet the demands of advertisers.