Enterprise Ireland
Annual Report and Accounts 2007
Annual Report and Accounts 2007
Enterprise Ireland provides financial support for the development of Irish companies by making direct investments in individual client projects and indirect investments through participating in venture capital funds.
In 2007, approvals to client companies totalled €135.6 million. This included support for R&D, start-ups, expansions, productivity improvement projects, management development and training.
Twenty-nine major investments in excess of €750,000 were approved to client companies, with associated company investment of €319.1 million.
Total financial payments to companies in 2007 were €73.9 million. This included €23.68 million in share capital investment, €39.39 million in R&D, training and other capability building support, and €10.83 million in capital and employment support for capacity expansion.
The organisation realised €22.4 million from share sales, venture capital funds and share redemptions and a further €1.6 million in dividends from our equity portfolio.
A number of venture capital funds made significant progress in 2007 under Enterprise Ireland’s €175 million Seed and Venture Capital Scheme. These include the €30 million AIB Seed Capital Fund, which is expected to make up to 60 investments, and the Bank of Ireland Kernel Capital Partners Private Equity Fund, which completed a first closing of €70 million. These funds extend the competitive venture capital market in Ireland and are vital in broadening access to funding for start-up, early, and development stage businesses.
On behalf of the Department of Agriculture, Fisheries and Food, Enterprise Ireland administered a major capital investment fund for the Irish Dairy processing sector. The Dairy Investment Fund was designed to stimulate necessary investment to ensure the long-term competitiveness and viability of the highly important dairy industry in Ireland. In 2007, the Government approved 19 capital investment projects which were awarded grant assistance of €114 million under the Fund. This investment will generate an estimated capital spend of €286 million in the Irish Dairy sector.
The Irish economy has changed radically in recent times. Irish businesses are operating in an intensely competitive global environment, and are faced with ongoing and accelerating change. To continue to grow and succeed, Irish companies must be innovative, competitive, and have the leadership capability to develop scale and sustain positions in international markets. Innovation across all aspects of business in Ireland will be central to securing the future export growth required to fuel the economy.
Consequently, we have placed innovation, leadership and growth as the fundamental themes underpinning Transforming Irish Industry 2008–2010, the new Enterprise Ireland strategy launched in 2007 by the then Minister for Enterprise, Trade and Employment, Micheál Martin T.D.
The priorities for the life of this strategy include driving innovation, stimulating the emergence and development of companies of scale, consolidating existing growth in key sectors and markets, capitalising on emerging opportunities, and helping to realise sustained and balanced regional growth.
The new strategy sets out fresh, challenging objectives, including the ambitious target of €4 billion in new export sales over the three-year period. The challenges will be significant going forward, but we are confident in the ability of Irish companies to grow and to continue to win new business in highly competitive global markets. Enterprise Ireland is deeply committed to supporting our clients in all areas, but particularly through enhancing leadership and innovation capabilities – key sources of competitive advantage and growth.
I join the Chairman in thanking all our partners in enterprise and Government for their continued support and assistance. I look forward to continuing our strong working relationships.
I express my appreciation and thanks to both the Enterprise Ireland Board and staff for their ongoing commitment and hard work, and in particular for their dedicated implementation of the Transforming Irish Industry 2005–2007 strategy.
Frank Ryan
Chief Executive Officer
 |
|
|---|---|
| 1. Capability Building | €36m |
| 2. Capacity Building | €26m |
| 3. Equity and Venture Capital Funds | €36m |
| 4. Technology and Scientific Infrastructure | €87m |
| 5. Net Operating Costs | €99m |
| TOTAL | €284m |
 |
|
|---|---|
| 1. Client Services Network | €35m |
| 2. Overseas Office Network | €21m |
| 3. Regional Office Network | €6m |
| 4. Science and Innovation Support | €24m |
| 5. Corporate Services Support | €13m |
| TOTAL | €99m |
1992/98 |
1993/99 |
1994/00 |
1995/01 |
1996/02 |
1997/03 |
1998/04 |
1999/05 |
2000/06 |
2001/07 |
|---|---|---|---|---|---|---|---|---|---|
€15,693 |
€15,687 |
€11,324 |
€10,725 |
€10,395 |
€9,537 |
€8,518 |
€5,961 |
€3,907 |
€6,111 |
2007 cost per job sustained (2007 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.
