Profits reverse at driverless car firm Valeo amid R&D focus

According to accounts filed by Connaught Electronics Ltd trading as Valeo Vision Systems, the company recorded the sharp drop in pre-tax profits as revenues dipped 2.5pc, to €271.8m from €278.8m.

The main factor behind the decline in profits was a drop in the French-owned company's investment income which fell to €2.1m in 2018 from €50.6m in 2017.

The investment income in 2017 was largely made up of a gain of €48m from the sale of a subsidiary to a connected group company.

Operating profits in 2018 declined by 10pc, to €33.9m from €37.6m.

Job numbers at the Co Galway-based Valeo Vision Systems have been increasing, as it has ramped up its research and development (R&D) spending. The workforce at the company increased to 1,097 from 1,022 in 2018, as the spend on R&D went up by 25.5pc, to €69.8m from €55.6m.

At the end of 2018, the firm had 466 people in R&D.

Valeo purchased Connaught Electronics in 2007. The firm is testing the latest technologies for intuitive driving.

The pre-tax profit takes account of non-cash depreciation costs of €12.6m and an impairment of financial fixed assets of €15.3m.

Staff costs increased to €58.57m during 2018.