Enterprise Ireland
Annual Report and Accounts 2006
Annual Report and Accounts 2006
Finance and Investment
Enterprise Ireland financially supports the development of Irish industry by investing in individual client company projects and venture capital funds.
In 2006, approvals to client companies for R&D, expansions, management development, training and productivity improvement projects totalled €121.4 million, an increase of 40 per cent over 2005. Fourteen major investments to large companies leveraged a total investment of €415 million with funds of €32 million approved by Enterprise Ireland.
Our total financial payments to companies was €66.2 million. This included €25 million in share capital investment; €31.4 million in R&D, training and other capability building support, and €9.8 million in capital and employment support for capacity expansion.
In May, Minister Micheál Martin announced an injection of €175 million Enterprise Ireland funding to further leverage the growth of a competitive, vibrant private venture capital (VC) system. In the context of the Seed and Venture Capital Scheme 2007-2012, this development, aimed at broadening access to funding for start-up, early stage and development stage businesses, represents a new phase in our strategy to extend the competitive VC market in Ireland. It is anticipated that this funding will leverage private investment that will generate total fund value of the order of €1 billion to invest in Irish businesses.
The organisation realised €30.6 million from share sales, returns from previously invested venture capital funds, share redemptions, and a further €2 million in dividends from our equity portfolio. Following sanction from the Department of Enterprise, Trade and Employment, Enterprise Ireland retained €26.9 million to part fund the €175 million venture capital fund.
A major €300 million capital investment package for the Irish dairy processing sector was announced in September by the Minister for Agriculture and Food, Mary Coughlan, T.D. This fund includes €100 million of Government grant assistance and is designed to stimulate necessary investment to ensure the long-term competitiveness and viability of the highly important dairy industry in Ireland. Enterprise Ireland is managing the fund on behalf of the Department of Agriculture and Food.
This year the Government also renewed the Business Expansion Scheme and the Seed Capital Scheme for a period of seven years, increasing the company and investor limits for both schemes. These changes will play a vitally important role in assisting more Irish entrepreneurs to bring their business, product and ideas to market faster than would otherwise be the case.
The European Commission's approval during 2006 of new State Aid guidelines for capital investment, job creation and R&D projects will have an impact on the way Enterprise Ireland provides funding in the future, and State Aid for certain projects is reduced in some regions. However, new State Aid guidelines provide additional opportunities in funding R&D, innovation and training, and in supporting innovation-led start-up companies.
Challenges ahead
Solid advancements against challenging targets over two successive years position the organisation to deliver on all of our three-year targets.
However, the 2006 outcomes were hard won, and it is likely that the world economy will provide a demanding environment for client companies over the coming year .
While work is underway on developing a new Enterprise Ireland strategy covering the period 2008-2010, we will nevertheless be unyielding in applying the organisation's full resources to achieve the aims of the current strategy.
With the Chairman, I thank all of our partners in industry and Government for their continued support.
Finally, I wish to join with the Chairman in acknowledging the strong performance of the staff of Enterprise Ireland. The enthusiasm with which they approach the fulfilment of our challenging commitments to our clients is exemplary. Together with the positive, proactive assistance of the Board, I thank all of them for their efforts in support of our client companies.
Frank Ryan
Chief Executive Officer
 |
|
|---|---|
| 1. Net Operating Cost | €95m |
| 2. Technology and Scientific Infrastructure | €83m |
| 3. Equity and Venture Capital Funds | €33m |
| 4. Capacity Building | €15m |
| 5. Capability Building | €35m |
| TOTAL | €261m |
 |
|
|---|---|
| 1. Client Services Network | €36m |
| 2. Overseas Office Network | €21m |
| 3. Regional Office Network | €6m |
| 4. Science and Innovation Support | €17m |
| 5. Corporate Services Support | €15m |
| TOTAL | €95m |
| 1991/97 | 1992/98 | 1993/99 | 1994/00 | 1995/01 | 1996/02 | 1997/03 | 1998/04 | 1999/05 | 2000/06 |
|---|---|---|---|---|---|---|---|---|---|
| 16,190 | 17,012 | 16,344 | 12,129 | 10,588 | 11,102 | 9,763 | 8,481 | 5,628 | 4,139 |
2006 cost per job sustained (2006 prices). The cost per job is calculated by taking into account all agency expenditure on all firms in the period. Only jobs created during, and sustained at the end of, each seven-year period are credited in the calculations.
