EXCEPTIONAL COSTS resulted in pretax losses increasing at restaurant and catering group Kylemore by nearly fivefold to €1.8 million last year.
Accounts filed by Kylemore Foods Holdings Ltd to the Companies Office show revenues dropped by 8 per cent from €33.1 million to €30.2 million in the 12 months to the end of March 2010. Before an exceptional item of €1.33 million is taken into account, the group’s operating losses decreased by 21 per cent from €566,433 to €443,463.
The exceptional costs included a €920,073 write-down of fixed assets, the provision of €337,500 in relation to onerous leases, and a €81,529 impairment cost relating to a master franchise. This pushed the group’s pretax losses to €1.85 million – an increase of 493 per cent on the pretax loss of €312,656 in the year 2009.
Established in 1920 by the Hogan family, the group, which employs over 600 people, is today 50 per cent owned by listed industrial holdings group DCC, with the remaining 50 per cent in the ownership of the Hogan family.
Kylemore serves eight million meals per annum in 28 restaurants across the country.
In their report, the directors stated: “Retail restaurant division turnover declined in the prior year and trading performance was impacted by the economic environment, which has resulted in reduced consumer spend.”
They added: “the trading performance was also impacted by the high levels of leasehold property costs . . . the company continues to actively negotiate these costs”.
The group provides contract catering and the directors stated the contract services division “performed well during the year supported by the award and commencement of a number of new contracts”.
The company had net assets last year of €10 million, including €1.9 million in cash. Employment at Kylemore increased from 593 to 604, but wages and salaries decreased by 9 per cent from €12.4 million to €11.3 million.
Remuneration to the company’s two directors, Tommy Breen and Brian Hogan amounted to €237,026 – up from €210,240.
The group declined to comment on the results.
