Iraq exit lowers firm’s profits

The US withdrawal of troops from Iraq is hitting revenues and profits at a Shannon Airport-based in-flight catering firm.

Ean Malone, director of EFG Inflight, confirmed yesterday that company revenues from US troops going through Shannon “has dropped significantly” in the current year.

Mr Malone said the exit of troops from Iraq will hit revenues and profits at the firm this year.

Less than 250,000 US troops passed through Shannon last year, and the withdrawal of US troops from Iraq is resulting in a decline in numbers, although troops continue to pass through Shannon on their way to Afghanistan.

“In previous years, US troop business would have accounted for 60% of our revenues,” said Mr Malone. “Now that breakdown is reversed and the Iraq pull-out is a huge part of that.”

Accounts recently filed by EFG Inflight show the firm increased pre-tax profit 2.6% to €988,726 in the 12 months to the end of May last after generating revenues of €10m.

Mr Malone said that he expects the firm — where 100 people are employed — to record profits of €500,000 in 2012.

“Revenues would be down 25% to 27% this year,” he said

Mr Malone said EFG Inflight will continue to diversify in response to the downturn in troop numbers going through Shannon.

This is underlined with the company’s Zest retail brand expected to account for almost 15%, or €1.1m of projected revenues of €7.5m this year, compared to €750,000 of €10m revenues last year.

Mr Malone confirmed the company hopes to lodge a planning application for a Zest outlet on the former Avoca site at Bunratty later this year, with construction due to commence in early 2013 with a 10-month build anticipated.

Mr Malone said the project, which will require a €1.2m to €1.5m capital investment, will create 40 permanent jobs.