THE DUBLIN sales and support operations of computer-maker Dell suffered a 22 per cent drop in pretax profits in 2009.

Recently filed accounts for Dell Direct, which operates from a base in Cherrywood, Co Dublin, show it booked an operating profit of €10.95 million in 2009, a substantial drop on the €14.03 million recorded the previous year.

Last January, Dell announced a €4 billion “cost initiative” plan that saw the closure of its manufacturing operations in Raheen industrial estate in Limerick. Production moved to a new plant in Lodz, Poland, with the loss of 1,900 jobs.

In their 2009 report, the directors of Dell Direct note that the organisational changes to Dell’s operations in Europe, the Middle East and Africa are ongoing and the company is still pursuing its target of a reduction in overall staff numbers of 10 per cent.

Staff numbers at Cherrywood, which houses Dell’s direct sales and telephone-support operations for Ireland and the home and small-to-medium business sector in the UK, were significantly reduced over the period ending January 2009.

The average number of workers employed was 1,307, a reduction of 236 on the median of 1,543 working at the facility the previous year. Accordingly, the firm’s expenditure on wages and salaries dropped from €91.8 million to €86.9 million over the same period.

Revenues declined 12 per cent to €141.9 million during the last financial year. Selling expenses came to €8.42 million, while other operating expenses totalled €122.7 million.

The recognised profit of €9.8 million, after payment of €1.17 million in tax, was added to the company’s retained profits and the directors did not recommend payment of a dividend.

The company’s corporation tax liability of €1.23 million was offset by €297,801 in manufacturing relief. The reduction was substantially less than the €451,285 in relief secured in 2008, and manufacturing relief itself is set to expire in December 2010.

Dell Direct received grants from the IDA worth €2.97 million, a marked 80 per cent reduction on the €13,927,694 bestowed on the company in 2008. These grants can be revoked should the company cease trading.

As at the end of January, Dell Direct had a balance of €72.36 million in its profit-and-loss account and had net assets of €101.6 million. The US firm declined to comment on the accounts.