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Speed cameras business


English: Bane of the motorist The bane of ever...

In July this year (2013), I read an interesting brief news report about a speed van operator in Ireland. Yes, we all hate these guys, but the article made me realise this seems like a good business to be in – even if you are hated by motorists. According to the article, the GoSafe consortium makes a profit of almost €50,000 per week or €2.5m per year. It has almost €11m debt and is contracted to provide 6,000 hours per month to the Irish state. The article notes that at least one motorist per hour is caught speeding. I don’t know the ins and outs of the contract, but if the company makes a profit of €2.5m annually, even if it does pay out some dividends, the debt owing could be paid down quickly it would seem.  The management accountant in me would really like to know what is the breakeven number of speeding motorists per day! You can read more at this link: http://www.rte.ie/news/2013/0720/463662-speed-vans/

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About martinjquinn

I am an accounting academic, accountant and author based near Dublin, Ireland.

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