THE DUBLIN-based sales and support operations of computer giant Dell increased pretax profits last year by 5.7 per cent to €11.5 million in a spite of a fall in revenues, writes Gordon Deegan.

Latest accounts for Dell Direct show that revenues in the 12 months to the end of January 2010, declined from €141.9 million to €104 million. However, a cut in its costs base from €131.9 million to €94.1 million boosted profits.

Dell Direct’s workforce at Cherrywood, which houses its direct sales and telephone-support operations for Ireland, and the home and small-to-medium business sector in the UK, fell by 241 to 1,066 last year as part of a €4 billion “cost initiative” plan that also saw the closure of its manufacturing operation in Limerick.

The job cuts at Dell Direct reduced staff costs to €78.5 million from €98.5 million last year.

Dell Direct received grants from the IDA worth €3.8 million last year, compared with €2.9 million in the previous period.