The operator of the Milano chain of pizza restaurants here plunged into the red to record pre-tax losses of €13.34 million last year.
According to new accounts filed by Agenbite Ltd, the business, which runs 18 outlets in the Republic, recorded the loss after revenues plunged by €16.17 million, or 62 per cent, from €25.86 million to €9.69 million in the 53 weeks to the end of January 3rd, 2021.
The directors say the decline in business was due to the impact of Covid-19 throughout the majority of the year which resulted in its restaurants being closed for extended periods of time, as well as reduced seating capacity when open due to social distancing measures.
These measures contributed to the firm’s workforce almost halving from 561 to 286 during the year with the loss of 275 jobs. The business received €1.19 million in Government wage subsidy scheme payments.
The company’s operating loss for the 53 weeks was €1.31 million compared to an operating profit of €4.6 million in the prior 12 months – a negative swing of €5.92 million.
The chief factor behind the pre-tax loss of €13.3 million was exceptional costs concerning a €7.24 million impairment of right of use assets and €2.7 million impairment of property plant and equipment.
The loss also takes account of non-cash depreciation costs of €3.3 million and finance charges of €2 million.
The directors say in the current environment they “were satisfied with the performance despite being considerably below budget” and that the company will continue with a strategy of growth through both existing restaurants and opening new restaurants. However, they conceded that “future developments of the business are entirely dependent on how long we remain in crisis mode due to Covid-19”.
