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Group wage payments drop by €10m

THE impact of the pandemic on employment within Shannon Group was revealed in its annual report for 2020 this week.
According to the report the group was employing 206 fewer people on average in 2020 when compared to 2019.
There were an average of 512 whole time equivalents employed in 2019, but this dropped to 306 the following year, the report stated.
Basic wages and salaries slumped from €22,814,000 in 2019 to €16,882,000 in 2020. Overtime payments fell by more than 75%, from €675,000 to €164,000.
The total amount of compensation paid to workers was just over €24.5 million in 2019. Shannon Group received wage subsidies of €3.68 million in 2020, and when this is taken into account, the 2020 figure was just €14.17 million.
A voluntary severance scheme was launched during the year and Shannon Group spent €3,436,000 on associated costs during the year.
The report indicates that Shannon Commercial Properties and Shannon Airport Authority received some flexibility from lenders during 2020, and it stated that all the Shannon Group companies “are in compliance with their applicable financial covenants at the year-end date”.
Regarding potential liquidity risk, the report says, “Cash generated by the business is the primary source of funding available to the Group.
“The Group’s subsidiary companies, Shannon Airport Authority and Shannon Commercial Properties have obtained long-term bank loans to partially fund their capital expenditure programmes.
“A prudent approach is adopted in managing liquidity including funding of significant investment requirements.
“The Group has determined its risk appetite for commercial investments and set financial tolerance levels accordingly.
“The Group operates strong business and financial control systems with regular operational cash flow and cash balance position reporting, early signalling of material deviation from plan and carries out reviews to ensure liquidity is maintained in the short to longer term.
“The Group has adequate funding resources available to meet forecast short term funding requirements of its operations and capital investment programme.
“An overdraft facility of €5 million is available to meet short term working capital requirements. Arising from this, the bank holds security over certain Group assets. The overdraft facility was used during 2020 and 2019, and was in use at 31 December 2020.
“The Group has prepared a five-year rolling plan. Implementation of the Group’s capital programme will require additional external borrowings.”

About Owen Ryan

Owen Ryan has been a journalist with the Clare Champion since 2007, having previously worked for a number of other regional titles in Limerick, Galway and Cork.