Supermacs posts pre-tax profit increase of 18pc despite fall in revenue
Published 17/12/2010 | 05:00
Pre-tax profits at the Supermacs fast-food chain last year increased by 18pc to €6.2m in spite of a dip in revenues.
Accounts just filed by the Irish-owned Supermacs Holdings Ltd, showed that the company's turnover decreased by 7pc from €63m to €58.8m to the end of December last.
Supermacs operates over 90 restaurants in the Republic and Northern Ireland and the accounts show that the Galway-based group's operating profit dropped by 15pc from €6.1m to €5.2m.
The filings show that the group added €1m in investment income to its operating profits, resulting in its pre-tax profit figure of €6.2m.
Last year was the first year since 2004 when the company's profits were not adversely affected by write-downs in its investment of the US-based Claddagh Irish Pubs chain.
Between 2005 and 2008, the group wrote down almost €23m in its investment, including €1.8m in 2008.
The directors' report for 2009 said that turnover decreased last year "due to the current economic climate".
The directors stated that they were "satisfied with the performance of the group during the year".
The accounts also include depreciation and amortisation costs totalling €1.4m last year.
The profits recorded last year resulted in the group having €26.6m in accumulated profits at the end of December. In a healthy balance sheet, the group had €17.6m in cash at the end of last year.
The company's cost of sales last year decreased by 11pc from €30.2m to €28.3m, while administrative expenses reduced by 4.5pc from €26.5m to €25.3m.
The directors of the company are Pat McDonagh and his wife, Una. The filings show that the directors' remuneration last year remained at the same level of €62,789. The directors recommended that no dividend be paid last year.
The company's turnover is derived from the operation of fast-food outlets and operation service stations in the island of Ireland and counts nine subsidiaries engaged in fast food, patent technology, forestry development and franchising technology related to fast foods.
Separate accounts filed for one of the subsidiaries, Supermacs Ireland Ltd, which is solely engaged in the sale of fast food in the Republic, show that last year it secured a pre-tax profit of €3m on a turnover that decreased by 5pc from €29.8m to €28m.