Pre-tax profits at the Lufthansa Technik group of Irish companies last year increased by 42% to $81.36 million or €74.28 million.
New consolidated accounts lodged by Lufthansa Technik Airmotive Ireland Holdings show that the group's profits increased despite revenues decreasing by 7% from $167.7 million to $155.58 million last year.
The directors state that the drop in revenues was driven by the sale to the Atlantic Aviation Group of aircraft maintenance firm, Lufthansa Technik Shannon Limited (LTSL), which generated turnover for the group in only the first three months of the prior year, until its disposal on 31 March 2022.
On a like for like basis, revenues increased by 1.3% and the Lufthansa business consists of subsidiaries engaged in leasing of aircraft engines; aircraft engine component repair and providing support to the Technical Services Provision and Mobile Engine Services operations in Ireland.
A note attached to the accounts states that 2023 was one of the best years for the Lufthansa Group in economic terms, with the recovery in demand for flights after the Covid-19 pandemic continuing in 2023, resulting also in significantly higher demand for Maintenance Repair and Overhaul (MRO) services.
The directors state that 2023 revenues for the Engine Component Repair segment increased by 41% on the previous year "as operations continued to recover and ultimately surpass pre-pandemic levels" while revenues from 'pure engine component' repairs increased by 42%.
The increase in revenues in the engine subsidiaries offset revenues in the group’s leasing firm falling by 13.5% and this was largely driven by a reduction in receipts from redelivery of lease engines and the current year impact of a lower volume of leases.
On the group's future developments, the directors state that "the group recognises the continued importance of improving efficiency, reducing the cost base, addressing the impact of seasonality, continuing with new investments and development of its product portfolio, in order to maintain and ultimately grow its business into the future".
The group last year recorded operating profits of $66.42 million and interest payments of $13.8 million and a $1 million profit on the sale of fixed assets resulted in the pre-tax profit of $81.36 million.
The group recorded a post tax profit of $69.64 million afterincurring a corporation tax charge of $11.7 million.
Numbers employed by the group reduced from 412 to 348 as staff costs totalled $25.55 million.
The profits last year take account of non-cash depreciation costs of $23 million and a non-cash write down in aircraft related components of $12.5 million.
The post tax profits for 2023 further strengthened the group’s balance sheet with shareholder funds increasing to $768.38 million last year.
Accumulated profits totalled $596.33 million.
Reporting by Gordon Deegan
