Delicatessen company to return to profit

HORGAN Delicatessen Supplies is set to return to profit this year as it enlarges its van sales network to increase its service to independent food outlets.

Operating out of state of the art €6m-plus premises at Knocknamuck, Mitchelstown, the family-run operation had sales of €26m in 2004 and managing director Michael Horgan expects sales to exceed this figure in the current year.

Retained profits at the company, with a staff of 95, fell to €1.68m in 2004 after pre-tax losses hit €238,781 (2003 €231,273), but Mr Horgan said the company is on course to go back into profit in the current year.

The introduction of central distribution by the multiple store operators impacted on the company’s ability to get its products on supermarket shelves, but Mr Horgan said these difficulties have been overcome.

Mr Horgan said that the company’s policy of heavy depreciation of assets, resulting in a charge of €558,706 in 2004 impacted trading profits of €500,930 heavily.

Horgan Delicatessen Supplies, which started life in 1977 in the family butcher shop at Lower Cork Street in Mitchelstown, has been developed by Michael and Maura Horgan into one of the leading specialist food supply companies in the country. The company’s annual accounts to be lodged with the Companies Registration Office show that while no dividends were paid, total directors’ fees, expenses, pay, pension contributions and other emoluments came to €268,171 (€244,898). Staff pay, pensions and other costs came to €3.6m

Mr Horgan said the company is ratcheting up its delivery van supply network to cater for a greater demand among independent outlets for its wide range of speciality foods.

Horgan is a supplier of speciality and chilled foods to supermarket chains, independent retailers, speciality food stores and the food services sector in the Republic and the North.