Top pizza chain Domino's has profits sliced by 30pc
Published 31/08/2010 | 05:00
Operating profits at the firm which is one of the country's largest franchise owners of Domino's Pizza outlets fell 30pc to €1.86m last year as turnover declined almost 10pc to €22m.
The company, Karshan, is controlled by Northern Ireland businessman Charles Caldwell, who acquired the outlets from former Domino's Pizza franchisees Kevin and Murph O'Driscoll in 2006.
Karshan paid over €22m to buy the Netherlands-based holding company for the O'Driscolls' outlets.
They owned stores at locations including Tallaght, Rathmines and Dundrum in Dublin. The Tallaght store has consistently been rumoured to be among the busiest Domino's outlet in the world.
Accounts just filed for Karshan, which employs about 220 people at its various stores, which also include outlets in Letterkenny and Naas, show that after interest totalling €646,000 was paid, Karshan was left with a pre-tax profit of €1.23m. It paid €328,000 in tax, leaving it with a profit of €902,000 compared to €1.4m a year earlier.
In 2008, Mr Caldwell received a total of €3m from Karshan by way of the redemption of 1,000 shares for €1m, with a further €2m premium paid for them. There was no redemption in the past financial year.
In the first half of this year, Domino's UK and Ireland, which controls the franchise for the region, reported a 30pc increase in pre-tax profit to £17m (€20.7m), while turnover climbed 24pc to £91.3m (€111.3m) for the period.