KFC’s Irish arm posts losses of nearly €470k

THE company that operates the Kentucky Fried Chicken (KFC) franchise across Ireland fell into the red last year after sustaining after-tax losses of €469,722.

Documents filed with the Companies Office show that Herbel Restaurants (Ireland) Ltd recorded a 10% drop in operating profits – from €5.1 million to €4.6m – in 2009. However, the firm – which operates 18 KFC outlets in Ireland – sustained the after-tax loss after bank loan repayments of €3.5m and the loss of €1.1m on the sale of a fixed asset were recorded. The figures show that the company’s revenues declined, last year, by 4.5% – from €24.4m to €23.3m.

The directors stated that “despite the economic conditions, the KFC franchise business continues to trade well”.

Those directors of the company – Belfast-based businessman, Michael Herbert and his wife, Leslie – state that they are “satisfied with the company’s results” and that “the company is well-placed to deal with the uncertainties that exist in the economic downturn and in response, the directors are involved in prudent business planning and work closely with the company’s key stakeholders”.

The Belfast-based group is the largest KFC franchise in Europe operating in the Republic of Ireland, the North, England, Scotland and the Isle of Man.

The group – which, in total, employs 962 people and had staff costs of £14.5m (€10.5m) last year – had bank loans totalling £114m at the end of 2009. Its directors said that the KFC franchise business “continues to trade strongly, despite the economic downturn”.

The filings reveal that during the year, the group purchased five Kentucky Fried Chicken franchises for £4.6m, while in a post-balance post, the group confirmed that it purchased the share capital of Hillcocks (Armagh) Ltd for £12m on March 22 this year.