This article is from page 10 of the 2006-04-04 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 10 JPG
ONE of the longest established companies in the Shannon Free Zone has recorded a large increase in sales.
Element Six – formerly De Beers Industrial Diamonds – increased its turnover from $185 million in 2003 to $237 million in 2004.
The most recent accounts filed to the Companies Office, also show that the company increased its gross profit from €83 million in 2003 to $123 million in 2004.
The profit increase can be linked to an increase in the size of Element Six’s sales and marketing division, which almost doubled its personnel, from 25 people to 48, in 2004.
However, the accounts also show the company’s pension fund for employees was deficient by $59.7 million. The company says there are proposals to remedy the deficit.
Element Six is the world’s leading supplier of high quality superabrasives and industrial diamond materials.
The principal activity at Shannon is the manufacture and sale of industrial diamonds.
According to the Directors Report, the company made a net profit of $15 million in 2004.
“We expect the general level of activity to improve in the foreseeable future,” the directors’ state.
The accounts also show that Element Six – which re-branded from De Beers in 2002 – paid a dividend of $89 million in 2004, which followed a dividend of $20 million in 2003.
In 2004, Element Six employed 530 people at the Shannon plant, an increase of four on the previous year.
Underlining the importance of Element Six to the Clare economy, staff salaries and associated costs amounted to $42.5 million in 2004. This represented an increase on the 2003 figure of €34.9 million.
The accounts also show that loans have been advanced to three Element Six directors, “to assist with the acquisition of housing and are interest free”.
The company accounts state that the loans “are repayable on retirement, or when the directors leave the company”.
The accounts record that at the end of 2004, MC Sexton, Dr TA Spooner and EA Brooks had loans of $43,000 each, amounting to a total of $129,000.
On its pensions deficit, the company state in the accounts statement the trustees have formulated a funding proposal to the Pension Board to address the deficit.
“The proposal involves increasing the contribution rate and reducing certain scheme benefits.”