Monday 23 October 2017

Profits hit €7m at island's biggest Domino's operator

The Domino's stores controlled by Shorecal employed almost 400 people last year
The Domino's stores controlled by Shorecal employed almost 400 people last year
John Mulligan

John Mulligan

The biggest Domino's Pizza franchise operator in Ireland dished up a €7.1m pre-tax profit last year.

The 25pc increase on 2014 came as consumers started splashing out again on treats as the economy improved.

Revenue at the company behind the pizza outlets, Shorecal, rose to €43.2m from €37m.

The franchise is owned by the Northern Ireland-based Charles and Adrian Caldwell.

Their stores include the busiest outlets in Ireland and some of the busiest in the world.

"The pizza-delivery market is highly competitive and the group will seek new opportunities to open stores whilst continuing to operate effectively and efficiently," they note in newly-filed accounts for Shorecal. A number of years ago the Caldwells paid over €22m to buy Irish Domino's outlets from former franchisees Kevin and Murph O'Driscoll.

Since then, the Caldwells have taken millions of euro out of Shorecal and its predecessors by way of share redemptions.

That included €6.5m in 2014, and €3m in 2008 that was extracted via a share redemption in an associated company.

Shorecal had €24.5m in shareholder funds at the end of 2015 and net debt of just €2m.

The Domino's stores controlled by Shorecal employed almost 400 people last year.

The company that controls the master franchise in Ireland, the UK and other countries including Switzerland and Germany, London-listed Domino's Pizza Group, said in an October trading update that system sales in Ireland so far this year had been 11pc higher at £45.2m. System sales reflect the total sales made by all stores to consumers in the period.

The group said its sales in Ireland were benefiting from an improving economy and an increasing trend towards digital ordering.

Shares in the company jumped last month after it said it intends to increase the number of stores it has in the UK from 950 to 1,600 over the next number of years.

It had previously set a target of having 1,200 outlets.

The Caldwells also own a number of Domino's Pizza outlets in the North.

Accounts for their company that controls the franchised outlets in the region show that it made a £1.7m pre-tax profit last year, compared to £1.2m the previous year.

Revenue at the firm rose to £11.1m from £9.7m.

The Northern Ireland company, which employs about 140 people, also paid a dividend of just less than £1.7m during 2015. The dividend was paid to Shorecal.

Its chairman, Charles Caldwell, was paid £265,000.

Irish Independent

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