Eddie Hobbs firm returns to profits after directors take 21% pay cut
The financial services firm co-owned by financial guru, Eddie Hobbs returned to profit last year in spite of a dip in revenues.
New accounts filed by Hobbs Financial Practice Ltd show that the firm recorded a modest pre-tax profit of €6,575 following the company recorded a pre-tax loss of €64,053 in 2016 - a positive swing of €70,628.
The firm, Hobbs Financial Practice Ltd enjoyed the return to profit as revenues decreased by 8% going from €901,246 and €828,209.
The chief factor behind the firm returning to profit was Mr Hobbs and his wife, Mary Fehily Hobbs taking a substantial pay cut last year.
The accounts show that pay, including pension contributions of €5,000, to the two last year decreased by 21% from €589,741 to €463,971.
The directors’ report state that the directors are satisfied with the results for the year.
The report states that the main activity of the company is an investment intermediary, an insurance intermediary and providing financial advice.
On the risks and uncertainties faced by the firm, the directors state that it is the continued growth of the company and the sustainability of the turnover levels in the financial sector in which the company operates in.
They state: “The company is solvent and has very little debt, therefore financial risk is minimal.”
The directors state that the firm “faces strong competition in the market and if the company fails to compete successfully, market share may decline”.
Numbers employed by the firm last year reduced from nine to eight made up of two directors and six employees.
Staff costs at the company, including directors' pay, last year declined from €829,365 to €685,793.
