Staff cut as Celtic Linen back in black
Celtic Linen returned to profit last year as a result of a net €5.42m gain from the company's examinership process.
New accounts show that Celtic Linen Ltd recorded pre-tax profits of €521,867 in the 12 months to the end of February 28 last and this followed it recording a pre-tax loss of €1.25m in fiscal 2016.
The company returned to profit in spite of revenues decreasing by 14pc going from €21.85m to €18.82m.
Numbers employed by the business have plummeted from 430 to 300. In December 2016, the firm exited examinership after receiving fresh investment of €1.39m and striking a deal with creditors to reduce debts.
The directors state that the company is concerned about the high level of over-capacity in the market and the continuing downward pressure on prices.
They state that they are confident it will return to profit.
The company's exceptional gain last year was made up of €10.93m from an examinership write-back and this was offset by a €1.64m cost of a fundamental reorganisation and a €3.86m non-cash impairment of a fixed asset.
This resulted in the net gain of €5.42m. The biggest area of the company hit by job losses was its distribution and sales function, where numbers reduced from 51 to three.
Staff costs last year reduced from €9.49m to €8.89m. Directors' remuneration increased from €290,060 to €546,386.