Friday 21 July 2017

KFC loses €44m after property write-down

Photo: PA
Photo: PA

Gordon Deegan

The Irish company that is one of Europe's biggest KFC franchise holders plunged into the red in 2015 to record pre-tax losses of €44.7m.

Documents just filed with the Companies Office in Dublin by Herbel Restaurants (Ireland) Ltd show that the firm recorded the losses after incurring exceptional costs of €46.59m.

The exceptional costs relate to the write-down in value of the firm's property portfolio - from €94.6m to €47.45m.

A note attached to the accounts states that the firm's loans were sold by Ulster Bank and subsequently refinanced after the balance sheet date.

The note states that, as part of that process, valuations were carried out in respect of all properties and the accounts reflect the same.

The note adds that the company, along with other group companies, has the necessary cash cover to meet its ongoing non-secured creditor obligations and liabilities for the foreseeable future.

The firm's directors are listed as Michael Herbert - who is one of Northern Ireland's best-known businessmen and a regular on Rich Lists - and his wife, Lesley Herbert.

The firm recorded revenues of €9.6m in the eight months to the end of November 28, 2015.

The revenues compare to sales of €18.33m for the prior 12 months.

The firm recorded a gross profit of margin of 58pc compared to 54pc in the prior year.

The firm received a corporate tax credit of €6m which resulted in post tax profits of €36.6m.

The loss resulted in the firm's shareholder funds of €28.27m becoming a shareholders' deficit of €10.37m. Staff costs reduced to €2.2m.

Irish Independent

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