The privately owned foreign exchange and global payments group Fexco has reported pre-tax profits of €18 million in the 10 months to the end of December 2002, a 46 per cent rise on the previous year.
The group's chief financial officer, Mr Michael O'Sullivan, said that, despite the difficulties experienced in the travel sector, the Co Kerry-based company was performing strongly in the current year.
"The tourist market has picked up and we are very happy with our performance in the year to date, which is coming in on plan," he said yesterday.
Fexco employs 900 staff and has operations in the Republic, Britain, Spain, Australia, the US and Dubai.
US-based First Data Corporation purchased 25 per cent of the company in 2001. The majority shareholder is Fexco founder Mr Brian McCarthy, with other directors and staff holding the remainder of the shares.
Last year, turnover increased to €87.6 million from €78.7 million in the previous year. More than 50 per cent of its revenues come from its Western Union money transfer service. Other significant revenue generators include credit card services, global company payments and bureau de change activities.
The group would not disclose the contribution from each of these businesses. It is also active in stockbroking, offering a low-cost execution service for its relatively small customer base.
Its 2002 profits reflect the disposal of 50 per cent of Fexco's shareholding in the international payments processing company Omnipay. It also disposed of shareholdings in other associate companies.
The company was adversely affected by a loss of €900,000 from associate companies where business was hit by the fall off in tourists following the September 11th attacks, the outbreak of SARS, and the strength of the euro. In the previous 12 months, these businesses had contributed profits of €3 million.
After-tax profits increased from €6.7 million to €10.8 million. Fexco will pay dividends to other group companies, which will be distributed to the shareholders. It will pay a dividend of 71 cent per share compared to €1.03 in the previous year.
