Expansion costs at Celtic Linen Wexford contributed to the company experiencing an increase in pre-tax losses of 38 per cent to €2.8 million in 2018, despite improved revenues during the year.
The Drinagh-based business recorded the increased losses as revenues rose by 50 per cent to €18.48 million in 2018 from €12.3 million in the prior 10-month period.
During 2018, Celtic Linen purchased Millbrook Linen for €1.8 million and the merged business currently employs 300 people.
The directors stated that the transaction capped a period of significant investment for the group during the year.
This followed the completion of a major upgrade of their Wexford facility by investing in new, high-quality textiles to improve the efficiency of the business and the quality of service.
The directors stated that hey are satisfied with the performance of the business to date.
A note on the accounts for Harkglade Ltd stated that, since the acquisition, the Millbrook Linen business contributed profits of €124,455 in 2018.
In December 2016, the company came out of a period of examinership after receiving fresh investment of €1.39 million and striking a deal with creditors to reduce debts.
The directors stated that they are confident that their turnaround plan for the group is still on track.
'The concentration continues to be on growing the business in a very competitive environment while maximising efficiencies in operations and logistics'.
Employment at the company increased from 255 to 315 and staff costs increased from €6.19 million to €8.7 million. Directors' pay rose from €245,828 to €470,826.
Causeway Capital, through its entity, Harkglade Ltd, agreed to invest €1.39 million into the business as part of it exiting examinership.
Causeway Capital was established in 2016 by David Raethorne and Matt Scaife, who were previously involved in a number of businesses, including Helix Health and Smiles Dental.