KFC franchise company posts €2m loss in 2010
THE company that operates the Kentucky Fried Chicken (KFC) franchise across Ireland plunged further into the red in 2010 to record pre-tax losses of €2m, figures have shown.
Documents just filed with the Companies Office showed that Herbel Restaurants (Ireland) Ltd sustained the increased losses after revenues at the firm dropped by 8pc from €23.3m to €21.4m in the 12 months to the end of December 2010.
The company operates 18 KFC restaurants in Ireland and, according to the directors' report, "despite the economic conditions the KFC franchise business continues to trade well".
The company's revenues were split between €18.7m from sales at KFC outlets and €2.7m in rent. The company owns a substantial portfolio in the UK and Ireland, with the properties situated in prime locations and predominantly occupied by large retailers.
The report stated: "The company enjoyed good rental returns during the year."
The pre-tax loss of €2m compares with a pre-tax loss of €18,964 in 2009.
Pushing the firm further into the red in 2010 was a €1.3m impairment of land and buildings and non-cash depreciation costs of €905,733, and amortisation costs of €61,052. This resulted in the company recording a cash profit in 2010 of a little more than €260,000.
The firm recorded an operating profit of €1.9m before exceptional items, with bank interest payments totalling €3.9m contributing to the €2m loss.