Losses widened at the Irish subsidiary of the security firm Brink’s last year on the back of higher insurance premiums resulting from rising crime levels.
The group, which is one of the largest cash-in-transit operators in the Republic, also said it had been forced to implement more health and safety measures, which had led to increased costs.
Newly-filed accounts show that Brink’s posted a €1.09 million pretax loss in 2014 compared to a loss of €258,633 a year earlier. This is despite turnover increasing from €33.2 million to €37.1 million.
The company recorded an operating loss of €598,783 versus a €147,544 profit a year earlier.
The group attributed the full-year loss to difficult trading conditions, a rise in insurance premiums, and a net pension liability of €2.75 million, up from €860,000 in 2013.
The directors stressed that its defined pension scheme continues to be in surplus under the minimum funding standard basis.
1,200 customers Brink’s has operated in Ireland since 1975 and currently employ close to 1,000 people and has
more than 1,200 customers. The group’s Irish unit consists of two divisions, one of which provides cash-in-transit solutions, money processing and ATM maintenance and the second, a security services unit, which offers guarding, key holding, electronic security systems and alarm response.
The group said its security services division, which began operations in 2008, performed above expectations last year with turnover rising 12 per cent from 2013.
Brink’s said it received a commitment from its parent in October 2015 to provide a capital contribution of €20 million and a credit facility of €6 million. The company said it would use the funding to repay intercompany debt and to meet the working capital needs of the firm.
“The directors are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future in the light of financial support committed from group entities,” it said.
Employee numbers at the company rose from 898 to 976 in 2014. Wages and salaries over the year increased from €21.9 million to €24.89 million.
