Toni & Guy's Irish arm posts losses of €1.2m
The Irish arm of hairdressing group Toni & Guy further plunged into the red last year, with its accumulated losses almost doubling to €1.2m.
Last year, Toni & Guy (Ireland) Ltd closed four of its salons with the loss of 35 jobs, and new figures show its accumulated losses increased from €694,110 to €1.22m in the 12 months to the end of August last.
The accumulated loss of €1.2m follows two years after the firm had accumulated profits of €454,488.
The loss to the end of August last prompted the company's auditors, O'Donovan Stewart & Co, to state that it indicates the existence of a material uncertainty, which may cast doubt about the company's ability to continue as a going concern.
According to a note attached to the accounts: "The financial statements have been prepared on a going-concern basis following assurances from the directors that the company will continue in operational existence for the foreseeable future.
"The validity of this assumption depends on the continued support of the Mascolo Ltd, who owns 50pc of the company."
Payments last year -- disclosed in the 2010 accounts -- include €259,910 in compensation to landlords in order to surrender leases on premises that were no longer required and were occupied by franchisee companies that had been placed in liquidation.
The company's largest creditor is Mascolo Ltd, which is owed €860,000.