Aircoach revenues surge to €30m topping pre-covid levels
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Private bus operator Aircoach this year recorded a pre-tax loss of €7.23m primarily due to onerous contract provisions concerning a loss-making contract.
New accounts filed by Last Passive Ltd show that in the 12 months to the end of March 30 this year, the company’s revenues increased by 15% from €26.18m to €30.09m.
The pre-tax loss of €7.23m this year followed a pre-tax profit of €1.8m in fiscal 2023.
The revenues this year top pre covid-19 revenues of €29.3m.
The company recorded an operating loss of €6.86m and interest payments of €369,000 resulted in the pre-tax loss of €7.23m.
The directors state that the current year “has seen a significant uplift in turnover as passenger numbers increased and the effects of the coronavirus pandemic are no longer impacting the business as they did in the previous years”.
The accounts show that the onerous contracts provision concerning a loss-making contract this year totalled €5.78m.
The directors state that “the trading environment for the next 12 months is set to be relatively challenging as the company and division continue to face competitive pressure and the high inflationary environment".
They state that from a cost perspective over the next 12 months, “the environment remains challenging with fuel price volatility and continued high inflation but this is being offset in part by growth and focus in commercial revenues”.
The directors state that the current period "saw the closure of the Galway route”.
They state that the route "consistently under-performed due to an oversupply of capacity in the market from a number of operators. This delivered a continual operational loss on the route which was unsustainable”.
The directors’ report states that “driver recruitment remains difficult in a growing public transport environment, but the directors remain confident that the company’s activities will generate a satisfactory result in the coming financial period.
Aircoach operates five key services connecting Dublin Airport with Dublin city centre and its suburbs, as well as non-stop express services connecting Dublin Airport with Cork and Belfast.
Numbers employed by the business - which is owned by the UK headquartered Firstgroup plc, increased from 202 to 235 as staff costs increased by 22% from €9.32m to €11.36m.
The loss for last year also takes account of combined non-cash depreciation and amortisation costs of €1.2m along with fleet rental costs of €1.2m.
The company takes account of a foreign exchange loss of €236,000 and directors’ remuneration of €162,000.
At the end of March last, the firm had a shareholders' deficit of €4.45m. The firm’s cash funds increased €2.65m to €4m.