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Irish arm of KFC records pre-tax loss of €854,893

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Dipping: Scotco ROI revenues dropped by 5pc

Dipping: Scotco ROI revenues dropped by 5pc

Dipping: Scotco ROI revenues dropped by 5pc

The Irish arm of fast food franchise Kentucky Fried Chicken (KFC) went into the red last year to record pre-tax losses of €854,893.

According to new accounts filed by Scotco ROI, the company recorded the pre-tax losses after revenues reduced by 5pc from €24.2m to €22.92m.

The pre-tax loss of €854,893 followed a pre-tax profit of €474,941 in 2018, a negative swing of €1.329m.

According to the directors, the KFC franchise continues to trade strongly.

They said: "Overall, the directors are satisfied with the company's results for the period."

The company recording the pre-tax losses after enjoying a gross profit of €9.89m, representing a gross profit margin of 43pc.

Earlier this week, it emerged that Belfast businessman Michael Herbert sold his UK and Irish network of KFC restaurants to UK company EG Group for an undisclosed sum.

Numbers employed by Scotco ROI last year decreased from 439 to 312 and staff costs reduced from €7.255m to €6.825m.

The loss last year takes account of non-cash combined depreciation and amortisation costs of €1.471m and a loss of €557,330 on the sale of a tangible asset.

At the end of December 29, the company was sitting on accumulated profits of €499,288. The company's cash funds increased from €1.06m to €1.12m.

The company recorded post- tax losses of €999,754 after paying corporation tax of €144,861.

The Irish unit is a subsidiary of KFC group entity Herbert Corporate Holdings and the most recent accounts show that it recorded pre-tax profits of £9.5m after recording revenues of £182.75m in 2018. Numbers employed were 3,846 and staff costs totalled £51.33m.

The group recorded an operating profit of £15.5m and interest payments reduced profits to a pre-tax profit of £9.5m.

Irish Independent