Expansion costs put website firm DoneDeal into the red
The strong profit growth enjoyed by the firm behind the on-line classified website, DoneDeal.ie last year stalled as the firm went into the red.
New accounts show that DoneDeal Ltd last year recorded a modest loss of €49,416 and this followed the firm recording profits of €1.1m in 2013 and €1.4m in 2012.
The firm went into the red in spite of increasing revenues by over 20pc to €9.5m last year.
In spite of the loss, chief executive of DoneDeal, John Warburton said yesterday that "2014 proved to be another exceptional year for DoneDeal in terms of traffic growth and adverts placed on the site".
He said that the results "are very much in line with expectations following planned investments in specific areas of the business".
Today, the business has over 60 staff at its Wexford and Dublin offices. Addressing the loss, Mr Warburton said: "The key factors behind the small loss last year are down to significant planned re-investment in the business, including technology infrastructure, web design, marketing costs and the recruitment of additional staff - up to 17 extra people."
He said that the company also incurred one off costs around its move into expanded offices in Wexford. The number of ads placed on DoneDeal has increased by 215pc since 2010.
Mr Warburton said that "the investments made in the business in 2014 will drive further growth for DoneDeal which is expected to translate into increased revenues and a return to profit for 2015".
Accumulated profits dipped to €3.86m while the firm's cash pile decreased to €3.93m
The CEO stated that "the amount of new people creating accounts with DoneDeal has increased by 32pc from 2013".