KFC's Irish business takes a licking
Published 11/02/2016 | 02:30
The company that operates the Kentucky Fried Chicken (KFC) franchise across Ireland last year plunged into the red to record pre-tax losses of €8.76m.
Documents filed with the Companies Office by Herbel Restaurants show the firm incurred exceptional costs of €4.4m relating to the write-off of an inter-company loan and a €5.6m loss on the disposal of fixed assets.
The firm - which is owned by one of Northern Ireland's best known businessmen, Michael Herbert - recorded the losses in the 15 months to the end of March last after recording pre-tax profits of €737,426 in 2013.
Revenues increased by 8.5pc, from €16.16m in a 12-month period to €18.33m in the 15 month period last year.
The directors' report said they "are pleased with the performance of the company during the year".
The firm recorded an operating loss of €7.339m last year after recording an operating profit of €2m in 2013.
Interest payments totalling €1.42m further increased the firm's losses to €8.76m. Cost of sales increased from €7.4m to €8.3m with administrative expenses more than doubling from €6.99m to €17.3m.
The loss last year resulted in accumulated profits falling from €9.45m to €668,337.
The firm's shareholder funds stood at €30m that included an investment revaluation totalling €29.56m. The profit takes account of €644,155 in non-cash depreciation costs.