Profits soar to €79.6m at Shannon firm

Engine utilisation drives profit

Gordon Deegan

Pre-tax profits at Shannon-based aircraft leasing firm Shannon Engine Support increased by 43pc to $90.56m (€79.6m) last year.

New accounts filed by Shannon Engine Support show that the firm recorded the sharp increase in profits as revenues went up 21pc from $160m to $194.27m.

A dividend of $5m has been approved since year end.

The company employs 35 and staff costs last year totalled $6.4m.

According to the directors' report, "overall turnover increased by 21.4pc - the main driver being an increase of the introduction of the LEAP engines and utilisation of the portfolio".

On the 43pc increase in pre-tax profit, the directors state that they are confident through engine utilisation and margin monitoring that profitability will continue to improve in the future.

The directors said that the pre-tax profit represents a margin of 47pc on its revenues which is above the previous year.

The staff last year shared a pay pot - including pensions - of $5.7m, or on average $164,000 each.

The profit takes account of non-cash depreciation costs of $73m. Shareholder funds totalled $1bn.