Linen firm in the red following expansion
Investment costs at linen and laundry firm Celtic Linen last year contributed to the company sustaining pre-tax losses of €1.5m.
The directors of the company said they are satisfied with the performance of the business to date, given the recent considerable restructuring within the group.
On February 1 last, Celtic Linen acquired Millbrook Linen Ltd and the merged business will have 300 employees.
"This transaction caps a period of significant investment for Celtic Linen across 2017 and 2018 after completing a major upgrade to their Wexford facility investing in new high quality textiles to improve efficiency of the business and the quality of the service," the directors said.
The company's revenues for the 10 months to the end of December last totalled €12.35m and this followed revenues of €16.8m for the prior 12 months.
The pre-tax loss of €1.55m followed a pre-tax profit of €521,867.
The firm said it is concerned about what it called the high level of over-capacity in the market and the continuing downward pressure on prices.
The directors said they are confident that cost reduction measures and the successful exit from examinership, followed by investment in equipment, textiles and systems, will enable the company to return to profit in this competitive environment.
In December 2016, the firm exited examinership after receiving fresh investment of €1.39m and striking a deal with creditors to reduce debts.
Staff costs for the ten months last year totalled €6.8m.