Kylemore reports €1.8m pre-tax loss

EXCEPTIONAL costs last year resulted in pre-tax losses increasing at restaurant and catering group, Kylemore, by more than five fold to €1.8 million.

Accounts just filed with the Companies Office, by Kylemore Foods Holdings Ltd, show that revenues at the group dropped by 8% — from €33.1m to €30.2m — in the 12 months to the end of March last year.

Before an exceptional item of €1.33m is taken into account, the group’s operating losses last year decreased by 21% from €566,433 to €443,463.

The €1.3m exceptional cost last year related to a €920,073 write-down of fixed assets and the provision of €337,500 in relation to onerous leases along with the €81,529 cost of impairing a master franchise.

This pushed the group’s pre-tax losses to €1.85m last year — an increase of 493% on the pre-tax loss of €312,656 in 2009.

Established in 1920 by the Hogan family, the group — which employs over 600 people — is 50% owned by DCC with the remaining 50% in the ownership of the Hogan family.

The group serves eight million meals per annum in the 28 restaurants it operates across the country.

In their report, the directors state: “Retail restaurant division turnover declined in the prior year and trading performance was impacted by the economic environment, which has resulted in reduced consumer spend.

“The trading performance was also impacted by the high levels of leasehold property costs and the company continues to actively negotiate these costs.”

The directors state that the group’s contract services division “performed well during the year supported by the award and commencement of a number of new contracts.”

They state: “The company is optimistic with regard to the continued growth and expansion of the division. The company’s focus on operational standards, quality assurance, innovation, cost management and staff development has delivered a solid operations platform and track record, which will support expansion and growth.”