The recently merged Netwatch Group recorded revenues of €35.1m in its first 10 months in business in 2018, new accounts show.
However, legal and professional fees totalling €7.26m arising from the merger of four businesses making up the new Netwatch Group from the UK, the US and here contributed to the business recording a pre-tax loss of €10.16m.
The Netwatch Group is made up of the Carlow-founded Netwatch along with the California-based National Monitoring Centre, CalAtlantic in Texas and the Sussex-based Onwatch Multifire.
The deal was funded by private equity firm, Riverside which is the largest shareholder in the new group.
The group - which provides visual surveillance and electronic security systems - now employs over 500 staff with offices in Carlow, Newry, Cambridge, London, Houston, Dallas, Boston and California.
The directors state that "the group had a strong year in their first period operating" and the US market led the way with revenues of €22.2m with the Irish market generating €6.7m while the UK market generated €6.2m.
They said the software that Netwatch software engineers are developing allows simultaneous high speed processing of multiple video alarms from client sites across the globe and is accelerating the group's growth.
The directors for holding company, Project Olive Holdings Ltd said that "management are forecasting significant increase in new business in the short term over 2018 levels".
The focus in the first period of trade was to integrate the businesses and grow the existing client base of each trading entity while maintaining its cost base.
On the group’s future developments, the directors state that the group will continue to grow at its current rate with future growth expected across all markets.
"We expect that turnover from the US market to continue to exceed other markets going forward."
The loss takes account of combined non-cash depreciation and amortisation costs of €7.2m. Finance costs totalled €1.57m.
Staff costs totalled €16.2m. The €7.23m in legal and professional fees from the merger is part of €9.8m in non-recurring restructuring fees.
Pay to key management personnel totalled €468,435.
