Mixed financial fortunes for Dell’s main Irish subsidiaries

One of Dell’s biggest Irish-based subsidiaries reported a sharp fall in profits last year as turnover nudged up slightly to $11.1 billion (€93.4 million) in the 12 months to the end of January 2017.

Recently filed accounts show Dell Products, which sells and distributes the group's technology products in Europe, the Middle East and Asia, reported a $5.3 million pretax profit in its last financial year versus a $9.4 million profit a year earlier.

Revenues climbed 1.7 per cent to $11.1 billion, having previously fallen 10.7 per cent in the prior year to $10.9 billion from $12.2 billion.

The accounts state the principal activity of the company was the sale and distribution of Dell manufactured systems and third-party manufactured computer option products. These were sold to end customers through group companies acting as agents, and to other group companies, according to the accounts.

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The company also provides ancillary operations support, supply chain and logistics management, and back office IT and finance support to other subsidiaries.

Fees and other distribution costs paid to other group companies amounted to $1.3 million, as against $1.2 billion a year earlier.

Dell Products had net assets of $99 million at the end of the financial year, down from $101 million in 2016.

Employee numbers at Dell Products rose to 846 from 774 last year with staff costs increasing from $71.2 million to $81.7 million.

Separate accounts recently filed for Dell’s other main Irish unit, which employs more than 1,100 people, show turnover increased by nearly 9 per cent to €129.4 million from €119 million in the 12 months to the end of February 2017.

Dell Direct, the computer giant’s Cherrywood-based sales and support operations unit, recorded pretax profits of €3.9 million from €3.3 million.

Staff costs totalled €93.3 million as against €83.9 million a year earlier.

The Cherrywood operation, which services the Irish market and the home and small/medium-sized business sector in the UK, provides data processing services, telemarketing sales and ancillary post-sales technical support. Turnover at the unit comprises primarily of commission income received from other group companies for the provision of sales and marketing services.

Dell merged with EMC last year in a $67 billion deal. The combined entity employs more than 5,000 people in Ireland.