Revenue settlement of €2.4m hits KFC profits
A €2.48m tax settlement with the revenue authorities in the UK last year hit profits at Michael Herbert's KFC franchise business there.
The Belfast businessman operates the KFC franchise here and in the UK. New accounts for his UK business disclose the £1.942m (€2.48m) settlement with revenue in the UK.
The tax settlement described as 'revenue enquiry settlement' in the accounts resulted in lower operating profits at Herbel Restaurants.
However, a write-off of a £7.19m loan due to a connected party resulted in pre-tax profits of £7m in the 12 months to the end of December 31st 2013.
The business recorded a modest loss of €81,701 in 2012.
The business recorded the large increase in pre-tax profits in spite of revenues falling by 18pc to £23.53m.
The accounts disclose that Mr Herbert - a regular on newspaper rich-lists - last year shared a dividend pay-out of £2.58m.
In 2013, the firm generated £21.99m from KFC sales with £1.5m generated from rental income. The profit takes account of £397,000 written off in investments and non-cash depreciation and amortisation costs of £987,000.
The directors state that "the KFC franchise business continues to trade strongly despite the economic downturn".
The report states: "Overall, the director is satisfied with the company's results".
The firm's shareholder funds rose to £15.1m with the firm's cash decreased sharply from £2.18m to £543,431. Numbers employed last year fell from 549 to 482 with staff costs decreasing from £6.29m to £5.11m.