‘Fade Street’ bar returned to profit

The well-known Dublin restaurant and pub controlled by entrepreneurs Jay Bourke and John Reynolds that features on RTÉ’s Fade Street series returned to profit in 2010, figures show.

Accounts lodged with the Companies Registration Office by Mercroft Taverns Ltd for the Market Bar on Dublin’s Fade St show the firm recorded a pre-tax profit of €295,087 following a pre-tax loss of €409,002 in 2009.

However, gross profit fell by 15% from €1.92m to €1.62m in the 12 months to the end of Dec 2010.

The chief factors behind the return to profit was a €245,029 credit arising from the reduction in impairment of a financial asset and a reduction in rent paid to Bellinter House Hotel from €850,000 to €212,500.

The abridged accounts — which do not provide a turnover figure — demonstrate that operating profits increased by 86% from €168,536 to €314,715. This gain followed on from administrative expenses declining from €1.75m to €1.3m.

Mr Reynolds, a nephew of former taoiseach Albert Reynolds, promotes the Electric Picnic music festival, while Mr Bourke has a number of interests in the hospitality sector.

The company’s accumulated losses declined from €2.5m to €2.2m.

According to the directors’ report, “the directors introduced cost-saving measures during the year to counteract the decline in consumer spending patterns in the current economic environment.”

The returns show Mr Bourke and Mr Reynolds, along with fellow director Eoin Foyle, took no remuneration from the company in 2010, compared to an aggregate remuneration of €67,220 in 2009.

At the end of 2010, the company had a shareholders’ deficit of €1.33m and the directors’ report states that “the company continues to depend on the support of its bankers and trade creditors”.

“The above circumstances indicate the existence of a material uncertainty which casts doubt about the company’s ability to continue as a going concern. However, the directors believe that the going concern basis is still appropriate as they have taken steps to reduce costs and have a reasonable expectation that the company’s bank will continue to provide facilities.”

The figures show that the average numbers employed at the bar and restaurant reduced from 53 to 45 in 2010, with staff costs declining from €1m to €822,518.

The firm had bank loans and overdrafts totalling €1.45m at the end of 2010. Interest payments on bank loans and overdrafts more than halved from €110,845 to €51,848.

The company’s cash during the year increased from €99,023 to €106,605.

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