Accounts just filed by Agenbite Ltd with the Companies Registration Office show the company sustained the drop in profits from €3.3m to €2.85m after its revenues increased by 1.6% from €17m to €17.2m in the year to the end of June 26, 2011.
The company’s accumulated profits stood at €20.1m.
A subsidiary of the British-based Pizza Express, Milano opened its first outlet in Ireland on Dublin’s Dawson Street in 1995.
Along with several restaurants in Dublin, the company also operates outlets in Cork, Galway, Limerick and Ennis.
As a result of the opening of a new store last year, the numbers employed by the company increased from 328 to 344.
According to the directors’ report, “during the period, the company opened one new restaurant and did not close any restaurants. The casual dining market is highly competitive and the company will seek new opportunities to open new restaurants, whilst continuing to operate effectively and efficiently”.
The directors state that the key risks to the company are considered to be competition from other restaurateurs; employee retention; timely supplies or quality products and the impact of the current economic climate.
The returns show that the employment of 16 additional staff contributed to staff costs increasing from €6.67m to €7.11m.
The returns show that the company’s cost of sales increased from €13.7m to €14.3m resulting in the company’s gross profit declining from €3.2m to €2.9m.
Administrative expenses of €73,000 resulted in the company’s operating profit declining by 14% from €3.3m to €2.8m.
The accounts show after paying tax of €394,000, the company’s after-tax profits were €2.46m.
The company’s cash last year reduced from €3.5m to €837,000. The amount spent by the firm in operating leases last year increased from €1.9m to €2m while non-cash depreciation costs totalled €769,000.
The company did not pay a dividend last year. Pizza Express established its first restaurant in London and today operates over 400 restaurants in Britain, while it also operates in Continental Europe and the Far East.