Catering firm profit rises despite ash cloud impact

TOTAL sales at a Shannon-based in-flight catering firm fell by €600,000 this year as a result of the impacts of the volcanic ash cloud in April and May.

However, in spite of the drop in revenues at EFG Inflight Ltd, pre-tax profits at the company increased by 50% to almost €1 million to the end of May this year.

According to accounts recently filed to the Companies Office by the firm, pre-tax profits increased by €320,814, from €642,384 to €963,198.

Managing director Ean Malone said yesterday that the company’s turnover declined from €9.9m in 2009 to €8.4m this year with the shut down of Shannon Airport in periods in April and May due to the ash cloud responsible for a loss of €600,000 in revenues.

Providing in-flight meals for the US military troops transiting the airport comprises 45% of the company’s business.

During last April and May, the troop traffic was diverted to Portugal and Norway due to the ash-cloud, resulting in EFG Catering losing the business temporarily and forcing the lay-off of staff.

Mr Malone said: “The longest a person was laid off was four days.”

The firm employs 89 people and Mr Malone said that excluding the ash-cloud disturbance, revenues were down 10% year on year due to lower passenger numbers going through Shannon Airport.

The directors’ report states “given the current overhead base, the directors are confident of a profitable 2011. The directors also continue to explore other catering opportunities”.

Mr Malone said: “We are very happy with last year and we will be re-investing the profits to expand the business.”

The company was established by three catering managers at the airport, Mr Malone, Fiona Barry and Ger Connolly, and they invested in a high spec catering facility at a cost of €3m at the airport.

The largest contributors to the company’s increase in profits was a 17.5% reduction in staff costs from €3.6m to €3m, with other operating expenses declining by 26% from €2.3m to €1.6m.

The filings also include depreciation costs of €115,855.

The company’s accumulated profits at the end of May totalled €1.6m, with the company having €1.44m in cash.

Remuneration, including pension contributions of €369,010, to the company’s three directors amounted to €817,833.

Mr Malone said that the company opened its first Zest food outlet in Ennis this year and “the business is outstripping our expectations with turnover over 20% to 25% of what we had anticipated”.

The company plans to open other Zest outlets in the mid-west, he said.