Revenues at a Dublin associated company of global accountancy firm EY last year rose by 24 per cent to €41.6 million.
New figures filed by Ernst & Young Services (Ireland) Ltd show that in spite of the soaring revenues, the firm’s pretax profits decreased by 86 per cent to €57,096.
A significant factor in the drop in profit was the company incurring a €264,544 impairment charge on its investment in DKM Economic Consultants.
The purchase of DKM Economic Consultants last year was the first acquisition by EY here and the accounts disclose that Ernst & Young Services (Ireland) Ltd paid out €693,288 for the firm, comprising €342,500 of cash and deferred consideration of €350,788.
Group EY revenues in Ireland for last year increased by 28 per cent to €316 million. The principal activity of the subsidiary, Ernst & Young Services (Ireland) Ltd, is the provision of support services to Ernst & Young chartered accountants.
Numbers employed by Ernst & Young Services (Ireland) Ltd last year increased from 184 to 216 as staff costs, including directors’ salaries, increased by €2.4 million – or 18 per cent – from €13.73 million to €16.16 million.
Directors
Pay to directors increased by 19 per cent from €4.03 million to €4.79 million, made up of €3.37 million in fees and €1.4 million in pension contributions.
The firm had 76 directors in place at the end of June 30th last.
Ernst & Young Services (Ireland) Ltd recorded an operating profit of €321,640 and the impairment charge of €264,544 reduced the firm’s profits to €57,096.
The impairment charge recorded was determined based on the difference between the net assets of DKM Economic Consultants and the carrying amount of the investment.
During the year, Ernst & Young Services (Ireland) Ltd traded only with Ernst & Young Chartered Accountants and the company’s entire revenue of €41.6 million relates to support services to Ernst & Young chartered accountants
