Operating profits down 36pc despite rise in gross profits at Eddie Rockets
Published 19/11/2015 | 02:30
Operating profits at the firm that operates the Eddie Rockets chain of fast food restaurants fell by 36pc to €598,380 last year.
The drop came despite gross profits at Eddie Rockets (Ireland) increasing from €8.27m to €9.13m in the 12 months to the end of December last.
Company founder and owner Niall Fortune opened the first Eddie Rockets in Dublin 26 years ago. According to the directors' report, "the trading results for the year and the financial position at year end were considered satisfactory by the directors".
The group sells two million hamburgers and 1,000 tonnes of french fries each year with chicken tenders, the classic hamburger and milkshakes the most popular items on the menu.
The firm operates 35 diners - 25 run by franchisees and 10 directly operated by the company.
Mr Fortune has announced his intention to expand the brand onto the Continent.
The firm recorded a pre-tax loss of €446,193 in 2014 and this arose from a write down of €1m in property.
Numbers employed rose from 172 to 194 with staff costs increasing from €4.45m to €4.9m.
Remuneration for directors fell from €688,174 to €528,098.
The directors' report states that "revenue and profitability have been maintained at a consistent level during the year due to continued patronage of customers. The future success of the company is based on its ability to win new and retain existing customers whilst maintaining expenditure in line with sustainable revenue streams."
The report adds that "in addition to growing revenues, the company also puts a strong focus on cost control. Spending is reviewed on a monthly basis. This has resulted in a strong management awareness and intervention to ensure that the company remains profitable".
The pre-tax loss last year resulted in accumulated profits reducing to €4.5m at the end of December last. The company's cash in hand and in bank rose from €888,183 to €1.097m.
However, the company's administrative expenses increased from €7.3m to €8.5m.