DUBLIN-BASED Irish Press plc made a loss after tax of €822,000 in 2007 following the write-off of investments in specialist lender ISTC and a Spanish radio licence.
This compared with an after-tax loss of €140,000 in 2006, according to accounts just published.
In spite of the large increase in losses, the Irish Press made a dividend payment of 15 cent a share, or €127,000 in total, to its shareholders. The biggest beneficiary of the windfall was chairman Eamon de Valera, who earned €69,727. Mr de Valera is the Irish Press's largest stockholder with 464.8 million shares.
The Irish Press accounts show that it wrote off its €200,000 investment in ISTC, the specialist lender set up by former Anglo Irish Bank executive Tiarnan O'Mahoney and rescued earlier this year by Collins Stewart. The media group also wrote off a €175,000 investment in an option to purchase an English-language radio station in Spain.
"Because decisions on the granting of radio broadcasting licences have been deferred and uncertainty whether the company will exercise its option, the cost of the options has been written off as a matter of prudence," Mr de Valera said in his chairman's statement.
He also outlined how the Irish Press had acquired a 51 per cent interest last year in MC Publishing Ltd and four associated companies for €400,000. MC produces a number of publications for the healthcare industry and carries out event management and other activities. "It [MC] is expected to make a positive contribution in 2008 and be a significant part of our business in the future," Mr de Valera stated.
Turnover at the Irish Press rose by 9.8 per cent to €2.25 million in 2007. Its administrative expenses, however, rose by 23 per cent to €2.44 million. The media group made an operating loss for the year of €541,000 compared with an operating surplus in 2006 of €120,000. Its accumulated profits declined to €3.6 million at the end of December 2007 from just under €4.9 million a year earlier.
The Irish Press also owns 56 per cent of local radio station Tipp FM, which is one of a number of local stations set to be sold to Scottish businessman Richard Findlay.
Mr de Valera said the station "performed well" during the year. "I am pleased to say that this good performance has continued for the first seven months of the current year." He said the Thom's directory made an "increased contribution" to turnover. "With the publication of two directories this year, it is hoped that the improvement will be maintained in 2008."
Mr de Valera said Minotaur Business Research Systems, in which Irish Press has a 55 per cent stake, failed to achieve its targets.
The company has written off the remaining €128,000 in goodwill associated with Minotaur.
