Redundancy costs hit profits at leasing business Aergo
Redundancy costs at Dublin-based aircraft leasing business Aergo Capital, formerly owned by billionaire Denis O'Brien, contributed to pre-tax profits reducing by 70pc to $985,000 last year.
Mr O'Brien established Aergo in 1999 and owned 80pc of the company before disposing of it last October to US investment firm CarVal.
However, prior to the sale, during the first quarter of 2014, Aergo Capital downsized as it focused on new generation aircraft.
This coincided with revenues declining by 70.8pc from $44.89m to $13.1m for 2014.
The directors state that they are satisfied with the business's performance.
In 2013 and 2014, the firm disposed of much of its older aircraft and is now actively rebuilding its fleet and expanding the range of aircraft in which it is investing. The directors' report states that "having reviewed its management resources for the business going forward, the group undertook a downsizing programme in quarter one, 2014".
They state that the review will result in the group "shifting its focus to newer technology aircraft going forward".
The firm last year paid out $774,000 in redundancy costs with the numbers employed reducing from 12 to eight.
Emoluments to directors fell from $1.2m to $800,000. Staff costs at the business increased from $2.1m to $2.29m.
$619,000 was paid to one unidentified key management member who is also an Aergo director.
Aergo Capital's revenues topped $3m and this was supplemented by the sale of aircraft totalling $10m - however, this was a sharp reduction on the $43.79m from the sale of aircraft in 2013.