KFC franchise holder back in profit after two years
The company that operates the Kentucky Fried Chicken (KFC) franchise across Ireland has returned to profit.
Latest results show that Herbel Restaurants (Ireland) Ltd swung to a profit of €795,460 in 2011 after recording losses in the previous two years.
Sales fell 3pc to €20.81m.
The company operates 18 KFC restaurants, and according to the directors' report, "despite the economic conditions, the KFC franchise business continues to trade well".
The company's revenues are split between €18.2m from sales at KFC outlets and €2.6m in rent, with the company owning a substantial portfolio in the UK and Ireland.
The properties are situated in prime locations and predominantly occupied by large retailers.
The report states: "The company enjoyed good rental returns during the year."
The value of the firm's investment properties is €90.4m.
The profit takes account of non-cash depreciation costs of €932,208 and amortisation costs of €58,174.
The group's two directors are Belfast businessman Michael Herbert and his wife Leslie.
The firm has bank loans totalling €64.8m.
A note attached to the accounts states that the company's current loan facilities have expired.
However, the directors' report confirms that "the directors of the company are in discussions over the renewal of bank facilities and are confident that these discussions will conclude successfully".
The firm recorded an operating profit of €2.978m with bank interest payments totalling €2.1m, reducing the firm's profits to €795,460.
The profit in 2011 increased the company's accumulated profits to €7.3m, with shareholder funds of €38.3m.
The firm's cash increased from €1m to €1.6m.