ILP, the Leixlip-based computer packaging company, has recorded a loss before tax of £688,000 in 1997 compared with a profit of £1,077,000 in the previous year. The results are as bad as feared following losses in the first half.
But founder and managing director, Mr Paul Burke, is confident of a recovery this year. He told The Irish Times that profits should be generated in 1998. The release of Windows 98 by Microsoft should lift demand, he said.
The loss is described as a "great disappointment" by chairman, Mr John Bourke. It is blamed on the delay in the move to the new plant at Leixlip.
The new plant was fully geared up in September 1997 when demand had fallen. However, the plant is now operating at a greatly reduced cost level. It is still losing money but is close to break-even. Mr Bourke noted that this could "appear later in 1998, if customer expectations materialise this year". Also a favourable sale and leaseback arrangement has been concluded "releasing funds to the business".
The new plant in Limerick is profitable. It is "keeping up with still growing customer needs in an increasingly efficient manner", Mr Bourke said.
The group's two businesses in Northern Ireland have been reorganised and received "significant new contracts".
The joint venture in Galway "achieved substantial production and sales". The problems at Seagate "did have a small effect" but sales continued to rise. The joint venture in Malaysia has "enjoyed remarkable success" by increasing sales and profits, according to Mr Bourke.
