Eddie Rockets chain records €400k losses

FAST-FOOD chain Eddie Rockets swung into the red last year with pre-tax losses of just over €400,000. This is in contrast to profits of more than €1 million in 2007.

The accounts for the company do not reveal turnover, though gross profit was higher – €9.7m from €9.3m – indicating sales in the period were ahead.

No dividend was paid out to the company’s owners Niall and Anne Fortune in the year. Eddie Rockets opened its first outlet in Dublin in 1990. There are nearly 30 restaurants in Ireland, as well as in Liverpool and Wales.

The company directors said in a note with accounts: “Revenue and profitability have been maintained at a consistent level during the year due to continued patronage of customers.

“The future success of the company is based on its ability to win new and maintain existing customers and maintain expenditure in line with sustainable revenue streams.” The directors also confirmed in addition to growing revenues the company puts a strong focus on cost control.

“Spending is reviewed on a monthly basis. This has resulted in a strong management awareness and intervention to ensure that the company remains profitable,” the accounts read.

The company said because of the economic crisis it has seen a significant deterioration in the value of its freehold land and buildings which has resulted in a net loss for the period arising from a €1.4m charge to the profit and loss account.

“Furthermore it is very difficult to determine the financial impact of this situation on the company. The directors continue to adapt the strategy of the company to these uncertain economic times,” the accounts read.

It said freehold land and buildings were valued in May and the directors as a result have revalued the properties downwards by €3m. Staff numbers increased to 209 from 190. Staff costs rose from to almost €4.8m to €4.6m.