Profits at firm behind KFC chain soar 93pc
Pre-tax profits at the company that operates the Kentucky Fried Chicken (KFC) franchise across Ireland increased 93pc, almost doubling to €1.53m last year, according to documents just filed with the Companies Office.
The new figures also show that revenues at Herbel Restaurants (Ireland) dipped by 8pc from €20.8m to €19m in 2012. The decline in revenues arises as the number of franchised restaurants last year declined from 18 to 16.
"Despite the economic conditions, the KFC franchise business continues to trade well," the company's report says.
The company continues to search for new opportunities for the KFC business, it added.
Accounts show that operating profits rose 7pc to €3.19m as administrative expenses declined 16pc and sales costs fell 6pc.
Interest payments totalling €1.45m and a loss of €206,218 on the disposal of an asset resulted in the pre-tax profits of €1.5m. The firm's accumulated profits stood at €8.7m at the end of last year, with shareholder funds totalling €39.7m, which included €1m in cash.
The profit last year takes account of €899,367 in non-cash depreciation costs.
Numbers employed by the firm last year totalled 211, with staff costs amounting to €5.1m.
The firm had bank loans and overdrafts totalling €65m.
The KFC franchise business in Ireland and the UK is owned by Belfast businessman Michael Herbert. Separate accounts for his UK and Isle of Man KFC business filed to Companies House in the UK show it recorded a modest loss of £81,701 (€96,457) last year as revenues declined by 16pc to £28.7m.
Herbel Restaurant Ltd's revenues are generated in the UK and the Isle of Man, and the loss arose from £860,868 in written-off investments; impairments on fixed assets and loans totalling £1.4m; and a £253,712 loss on the sale of assets.
The number of employees last year increased from 542 to 549, with staff costs declining from £7.3m to £6.2m. Remuneration for directors declined from £188,717 to £80,757.
The firm paid out dividends of £528,000, and this followed a similar payout in 2011.
In a note attached to both sets of accounts, it states the company's current loan facilities have expired.
It states: "Although the directors expect to be able to renew the facilities on similar terms and the banks have continued to support the company, the company has no binding agreement with the banks involved.
"The directors are in discussions to extend the terms of the bank facilities and are confident of signing such terms, hence it is appropriate for the financial statements to be prepared on a going-concern basis."