McDonagh ‘delighted’ with results as Supermac’s pre-tax profits rise 18%

PRE-TAX profits at the Supermac’s fast-food chain group last year increased by 18% to €6.2 million in spite of a dip in revenues.

In accounts just filed by the Irish-owned Supermac’s Holdings Ltd, company turnover decreased by 7% from €63m to €58.8m to the end of December last.

Supermac’s opened its 100th outlet at the Tuam Road in Galway earlier this month.

The accounts show that the Galway-based group’s operating profit dropped by 15% from €6.1m to €5.2m.

The company was founded by former schoolteacher, Pat McDonagh, who opened the first Supermac’s outlet in Ballinasloe in 1978 at the age of 25 and he continues to be managing director of the business.

Mr McDonagh said yesterday: “We’re delighted with last year’s results and we’re delighted with 2010 as well where we’re on target to make the same level of profit as last year.”

He confirmed that six new outlets, four group-owned restaurants and two franchise, have been opened this year with the group adding 250 full-time and part-time jobs in 2010.

“We’re very happy to be in a position of growth. The market is challenging and looks that it will be even more challenging next year. We kept our business tight during the good times and it is now paying dividends. We have kept costs and overheads tight and are working smarter and harder.”

The group is looking for further expansion in 2011 with the planned opening of a further four to five outlets. He said that rents are down between 25% to 50% on new rental properties.

The group added €1m in investment income to its operating profits resulting in its pre-tax profit of €6.2m.

Last year was the first year since 2004 when profits were not affected by write-downs in its investment IN the US-based Claddagh Irish Pubs chain. Between 2005 and 2008, the group wrote down almost €23m.

The directors’ report states turnover fell last year “due to the current economic climate”. The directors state they are “satisfied with the performance of the group during the year.”

The group had €26.6m in accumulated profits at the end of December. In a healthy balance sheet, the group had €17.6m in cash.

The numbers employed by Supermac’s fell from 642 to 617 last year with staff costs reducing by 2.5% from €12.8m to €12.3m.

The cost of sales decreased 11% from €30.2m to €28.3m, while administrative expenses fell 4.5% from 26.5m to €25.3m.

Separate accounts filed for Supermac’s Ireland Ltd, which is solely engaged in the sale of fast food in the Republic, show that last year it secured a pre-tax profit of €3m on a turnover that decreased by 5% from €29.8m to €28m.

© Irish Examiner Ltd. All rights reserved

Irish Examiner live news app for smartphones lets you quickly access breaking news, sport, business, entertainment and weather. appstoregoogle play
Irish Examiner ePaper app gives you the entire newspaper delivered to your phone or tablet for as little as 55c a day. epaper
Home

More From The Irish Examiner