Galway computer firm back to profit despite revenues dropping by 17pc
Computer part manufacturer Celestica has returned to profit and has also secured a new contract in a further boost to business.
New accounts filed by Celestica Ireland Ltd show that the firm recorded pre-tax profits of €1.67m in the 12 months to the end of December 2014.
The Co Galway-based firm recorded pre-tax losses of €2.87m in 2013 that arose from restructuring charges of €4.2m.
The Canadian-owned firm returned to profit in spite of a 17pc drop in revenues from €68.68m to €57m.
The company employs 401 and according to the directors' report: "Subsequent to year end, the company was awarded a new contract which is expected to increase the company's activities in future years."
Plans by the firm to vacate one of its premises were reversed after it secured the contract.
On 2014, the directors' report states that the 17pc drop in revenues "was primarily due to a reduced demand from a significant customer. Margins remain quite tight for the company due to the pricing agreement with its key customers."
The directors say they continue to seek new opportunities for the company and to effectively manage the cost base and operating margins.
They say some of the key risks and uncertainties include the company being reliant on its two main customers, plus the effective management of costs while continuing to provide optimal service to its customers.
The firm specialises in high-volume manufacturing and assembly on high-precision automated lines. The Galway facility is a key provider of the company's automated manufacturing services offering.
Staff costs in 2014 fell from €19.9m to €17.5m and remuneration for the company directors increased marginally from €96,479 to €106,434.
Numbers employed last year totalled 314 in production with 89 in management and administration.
Shareholder funds at the end of December 2014 had increased from €6.9m to €8.6m and the firm's cash rose from €3.3m to €7.06m.
The profit took account of non-cash depreciation costs of €114,228.
The company's cost of sales decreased sharply from €57.3m to €46.46m with administrative expenses decreasing from €10m to €8.8m.
The figures show that the vast proportion of the company's sales took place in Ireland in 2014 with €56.98m here and €127,927 in other countries.
The firm received an R&D tax credit of €180,662.