Mark Hilliard

The student company Usit Ireland has recorded a substantial drop in pre-tax profits alongside a rise in administration costs.

The company, which specialises in student travel and foreign work programmes, posted pre-tax profits of €239,380 in 2014, down from €686,270 the previous year.

Accounts filed for the year to October, also showed an operating profit of €267,671, down from €728,031.

Administrative costs jumped from just under €2.3 million to €2,587,140. Turnover dropped marginally from €5,875,541 to €5,816,651.

The results are a turnaround from last year when the financial performance had improved dramatically on 2012 in which the company reported a pre-tax profit of just €32,778.

“Despite a challenging economic environment, the group continues to trade robustly as it adapts its offerings to meet the patterns of youth who are seeking out work, study and educational opportunities abroad,” the accounts said.

The directors recommended not paying a dividend for the year, following a payout of €115,000 in 2013.

Usit Ireland employs 84 staff, down just two from the previous year, although the associated cost rose from just over €3.4 million to €3.75 million. That’s despite a sharp drop in pension costs from €83,026 to €47,562. The main increase came in the form of wages and salaries which climbed by almost €140,000 for the year.

The group operates a defined contribution pension plan with assets held separately.