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Avoca owner received State Covid-19 staff salary support


Retail: Avoca shop and cafe Rathcoole, Co Dublin

Retail: Avoca shop and cafe Rathcoole, Co Dublin

Retail: Avoca shop and cafe Rathcoole, Co Dublin

US-owned Aramark Ireland said it had participated in the Government's Temporary Wage Subsidy Scheme (TWSS) for staff when it was forced to shut down a number of its sites here in March in response to Covid-19.

That is according to new accounts for Avoca owner, Aramark Ireland Holdings and subsidiaries, which disclosed that the impact of Covid on certain parts of its business has been "significant".

The directors say, however, that "we are starting to see an increase in demand from these businesses significantly impacted by the Covid 19 closures".

A note attached to the Aramark Ireland's 2019 accounts states that the closure of a number of sites in March to the Covid 19 pandemic resulted in the placing of staff on the Government scheme.

The directors state that they are confident that the business will be back to normal operating levels once the virus is under control.

"During this period, the company is being supported by the wider group," they said.

Globally in 2019, the New York Stock Exchange listed Aramark recorded revenues of $16.23bn (€13.7bn).

The new accounts for Aramark Ireland show that restructuring costs and continued investment in the Avoca Group contributed to Aramark Ireland recording a €16.2m pre-tax loss last year. Group revenues decreased by 4pc from €351.6m to €335.9m in the 12 months to the end of September last.

The €16.2m pre-tax loss was 8.8pc larger than the pre-tax loss of €14.9m recorded in 2018. 

Retail revenues in the group last year increased from €73.1m to €75.9m and the directors said that "we will continue to drive strong and profitable growth in our Irish food and facilities business". In its diverse business portfolio, Aramark also operates a number of State owned direct provision centres and figures provided by the Department of Justice show that its Campbell Catering subsidiary last year received payments of €6.374m for its direct provision work.

The directors for the Aramark group said that earnings before interest, tax, depreciation, amortisation and restructuring costs €3.6m in 2019 compared to €4.9m in 2018.

The decline "was largely driven by the non-core element of our facilities business outside Ireland which we have decided to exit in 2018 and continued investment in the Avoca group," the directors said.

The Aramark group's redundancy/restructuring costs totalled €2.4m while combined non-cash depreciation and amortisation costs totalled €15.8 million.

A breakdown of revenues at the Irish-based unit of Aramark last year show that food service revenues totalled €167.4 million; retail - €75.9m; facilities management €82m and property management of €10.2m. The group's Irish business increased from €295.85m to €300m.

Staff numbers at the Aramark group last year fell from 5,417 to 5,240.

Salary costs, however, remained static at €132m and directors pay, including pension payments, last year decreased from €979,000 to €834,000.

Irish Independent