HP Irish subsidiary sees losses hit €4.25m
Restructuring costs at an Irish subsidiary of Hewlett Packard (HP) contributed to pre-tax losses at the firm almost doubling to €4.52m last year.
New accounts filed by Dublin-based Hewlett Packard Enterprise Ireland Ltd show that the business recorded the losses of €4.52m in the 12 months to the end of October last as revenues hit €275m.
Numbers employed by the company last year declined from 492 to 461. A note attached to the accounts states that restructuring charges last year totalled €5.4m.
The note states that the restructuring costs is the cost of workforce reduction incurred in the period and the €5.4m cost followed a cost of €1.14m under the same heading in the prior three-month period.
The HP subsidiary was only set up in 2015 and accounts for its first full year show that it recorded revenues of €275.13m here last year.
The principal activity of the company is the marketing, selling and servicing of computer software and equipment along with the provision of related consultancy services for enterprise customers principally within Ireland.
The directors state that "the results for the period are consistent with business forecasts and expected performance".
HP opened its first office in Ireland in 1976, with the Leixlip facility following in 1995. It grew its workforce to thousands of employees over the years, expanding its reach into manufacturing, research and development, customer software support, marketing, and sales and services.
The company has bases in Leixlip, Galway and Dublin.
The revenues of €275.13m for the 12 months compares to revenues of €91.38m for the three months to the end of October 2015.
The pre-tax losses of €4.52m last year compare to pre-tax losses of €2.7m in 2015.
The company recorded a post-tax loss of €4m after enjoying a corporate tax credit of €456,148.
The loss last year takes account of non-cash depreciation costs of €3.4m and operating lease rentals of €2.53m.
The firm recorded an operating loss of €5m last year and net finance income of €481,644 resulted in the pre-tax profit of €4.5m.
Staff costs at the company last year totalled €44.5m.
The company recorded an actuarial loss of €24.98m on its pension scheme last year.
At the end of last year, the company's cash pile totalled €49m. The company's shareholders' deficit totalled €12m.
The directors state that the company constantly focuses on revenue and margin growth while maintaining rigorous cost control and efficiency.