The Irish Lufthansa group of companies last year incurred a net impairment charge of $13m on engines and rotable assets detained in Russia under Russian sanctions.
That is according to new accounts which show that pre-tax profits at Lufthansa Technik Airmotive Ireland Holdings Ltd reduced by 3.8pc to $57.4m (€54.2m).
This followed revenues reducing by 25.5pc from $225.24m to $167.77m.
Concerning the detained assets in Russia, a note attached to the accounts states that "compensation from the lessee based on the anticipated non-redelivery of these assets, has been accrued in turnover for the current year".
The directors said that "compensation arising under the lease contracts meant that this impairment did not impact adversely on the net result" for the year.
Numbers employed at the Irish business in the 12 months to the end of December last declined from 741 to 412. This followed the business selling its Shannon based aircraft overhaul business in March 2022 and a note attached to the accounts states "that the final sale price was received in full post completion".
The business here has two other segments is engine component repair and engine and aircraft leasing and the directors state that revenues from continued operations decreased by 1%.
The directors said that group profit before interest and tax fell by 6.5% to $55.6m largely due to the $18.5m loss on sale of investment, which was partly offset by a $15.4m profit on sale of fixed assets inclusive of proceeds from lease asset redeliveries.
They said that revenues from the Engine Component Repair segment increased by 53% on the prior year as operations recovered to pre-pandemic levels.
Revenues from the Leasing segment decreased by 12% on 2021 and the decrease was largely driven by a reduction in one-off receipts relating to the condition of engines at redelivery and a reduction in lease revenues due to lower lease rates on older assets at renewal and asset sales.
At the end of December last, the group was sitting on shareholder funds of $698m that included accumulated profits of $526m.
Net staff costs at the business last year decreased from $27.9m to $21.68m. Pay to key management personnel last year increased from $837,000 to $1.02m.
The profit last year takes account of non-cash depreciation costs of $30.36m. The group's post tax profit was $47.7m after paying corporation tax of $9.7m.
Reporting by Gordon Deegan
