Profits soar at Eddie Hobbs firm as directors take hefty pay cut
A hefty cut to directors’ pay contributed to pre-tax profits at the financial services firm co-owned by Eddie Hobbs increasing by more from than 11-fold to €73,425 last year.
New accounts filed by the well-known financial adviser’s Hobbs Financial Practice Ltd show that the firm recorded the large hike in profits after directors’ pay was reduced by 32% from €458,971 to €313,704.
Mr Hobbs and his wife, Mary Fehily Hobbs, are the only directors at the Naas-based firm and they took the substantial pay cut as revenues at the business decreased by 4% from €829,209 to €793,318 in the 12 months to the end of October last.
The directors’ report states that they are satisfied with the results for the year.
The pay cut for the directors contributed to a 12% drop in administrative expenses to €719,568.
The report says that the main activity of the company is as an investment intermediary, an insurance intermediary and providing financial advice.
On the risks and uncertainties faced by the firm, the directors point to the rising costs from rules-based EU Directives across investment products, life office products and pensions.
They said: “The company is solvent and has very little debt, therefore financial risk is minimal. The company is also diversifying some of its activities."
Numbers employed by the firm last year remained at eight made up of two directors and six employees.
Staff costs at the company, including directors' pay, last year declined from €685,793 to €560,175.
At the end of last October, the firm had net assets of €271,256. The company’s cash increased from €67,962 to €150,723.
