Profits at IFSC subsidiary of Tyco up 36%

ANNUAL PRETAX profits at the IFSC treasury subsidiary of US conglomerate Tyco International increased by 36 per cent to $86.75 million (€55.26 million) in 2007, according to accounts just filed in the Companies Office, which also show that at the end of 2007 the firm made a $500 million distribution to its shareholders.

In the 12 months to September 28th, 2007, operating profit at Tyco International Finance Ireland, which has unlimited liability, increased by $22.94 million from $63.81 million in 2006, as net interest income surged by 34 per cent to $86.93 million. Net profit increased by per cent to $75.44 million, after a taxation charge of $11.31 million was discounted.

The firm provides financial services and loan facilities to companies in the Tyco group, as well as to other companies. In October 2006, the company began acting as the cash-pool leader for the Nordic entities within the group.

According to the accounts, no dividend was paid in 2006 or 2007, but subsequently, in December 2007, the firm made a $500 million distribution to its shareholders, consisting of $263 million dividends and $237 million return of capital.

Employment fell from 10 staff members in 2006, to seven in 2007, but employment costs increased by 28.26 per cent from $1.56 million in that period.

In 2007, the parent of Tyco International Finance Ireland, Tyco International, was spun-off into three independent publicly traded companies. Tyco consolidated its European treasury and accounting operations in Luxembourg as of July 31st, 2007, and closed its Dublin operation.