Dragon's Insomnia suffered €1.1m loss in 2009
Published 07/02/2011 | 05:00
TV personality Bobby Kerr's Insomnia coffee shop chain was hit by losses of €1.1m in 2009, according to accounts just filed.
Insomnia is co-owned by Mr Kerr, a star of RTE's 'Dragons' Den' and a presenter with radio station Newstalk.
Accounts for 2009 revealed that Insomnia was hit by costs stemming from "inappropriate use of funds" that totalled more than €280,000.
The exceptional cost of €283,750 contributed to Redcoral Catering Ltd incurring a pre-tax loss of €1.1m in the 12 months to the end of December 2009, according to accounts just filed with the Companies Registration Office.
The note said Mr Kerr and fellow director Harry O'Kelly "have addressed the issues giving rise to this event and are confident that adequate procedures are now in place".
Mr Kerr said yesterday "2009 was a tough year for Insomnia" and that he had no further comment to make.
The pre-tax loss of €1.1m in 2009 compared with a pre-tax loss of €4m in 2008 when the company incurred impairment costs on financial and fixed assets totalling €3.5m.
The filings showed the company made a profit of €49,339 in 2009 before depreciation costs of €1.2m were taken into account.
The company increased its gross profit by 2pc from €7.9m to €8.1m. Operating losses doubled from €180,607 in 2008 to €368,390 in 2009.
The company was also hit last year by €545,224 in the waiver of group company balances and €238,538 in bank loan repayments.
Under Mr Kerr's control, Insomnia has grown from 17 to 50 coffee shops. Last year, Mr Kerr stepped down as chief executive, but he remains chairman of the company.
Last April, Mr Kerr, along with two partners, bought Bang Cafe on Dublin's Merrion Row.
Insomnia had a shareholders' deficit at the end of 2009 of €1.1m. This included accumulated losses of €4.7m and a share premium of €3.5m.
The company's cash during the year increased from €83,137 to €208,225.
Staff numbers fell from 193 to 166 in 2009. Staff costs, including directors' remuneration, dropped by 19pc from €4.3m to €3.5m.
The figures showed the company was committed to an annual payment of rent of €1.56m for its shop units. The firm had bank loans totalling €3.2m at the end of 2009.