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Celtic Linen posts €2m loss as Covid batters the hospitality sector

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Turnover at the group behind Celtic Linen, Harkglade, which also services about 40pc of the country’s hospitals, plunged to €14.1m from €21.4m

Turnover at the group behind Celtic Linen, Harkglade, which also services about 40pc of the country’s hospitals, plunged to €14.1m from €21.4m

Turnover at the group behind Celtic Linen, Harkglade, which also services about 40pc of the country’s hospitals, plunged to €14.1m from €21.4m

Celtic Linen, one of the largest commercial laundry firms in the country, posted a €2m loss last year as revenues from the hospitality sector plunged.

Turnover at the group behind the business, Harkglade, which also services about 40pc of the country’s hospitals, plunged to €14.1m from €21.4m, newly-filed accounts for the business show.

Celtic Linen is owned by Dublin-based private equity firm Causeway Capital, which acquired the business out of examinership in 2016.

“The Covid-19 pandemic and ensuing lockdown on the hospitality industry resulted in the business’s hospitality revenues coming to a sudden halt in March 2020,” note the Celtic Linen directors in the accounts.

“The business continued to provide a critical service to hospitals, though standard operating procedures reduced within hospitals, resulting in lower healthcare volumes within the plant,” they added.

“Following the lifting of the hospitality industry lockdown on June 29, 2020, hospitality volumes began returning to the plant at 40pc to 50pc of prior year levels through August,” they said.

The directors added that further regional hospitality restrictions implemented in September last year, followed by a total lockdown of the hospitality sector in October, reduced the company’s revenue from the hospitality trade to “minimal levels”.

“The group continued as a critical supplier to the healthcare sector, being one of only two commercial laundries that supply to the healthcare public sector and servicing over 40pc of the hospitals in the country,” the directors added.

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They said the business was right-sized during the year to “match this new format”.

The accounts show that the group received €2.1m in wage subsidies from the Government during 2020.

The group employed about 328 people at the end of 2019, a figure that had dropped to 242 by the end of last year.

The accounts also show that the group behind Celtic Linen had a €6m shareholder deficit at the end of 2020. That was up from €4m at the end of 2019.

The group had €11.8m in net debt at the end of 2020. It owed €11.5m to Causeway Capital at the end of last year.

Causeway Capital rescued the Patisserie Valerie chain in the UK in 2019.

Earlier this year, the private equity firm reaped more than €35m in cash from its investment in online UK fashion group In The Style when it floated on the stock market.

Causeway retains a shareholding in the fashion firm.



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