Revenue dip lowers Sodexo’s profits

Pre-tax profits at catering firm, Sodexo Ireland last year decreased by 13.5% to €2.8m after revenues dipped to €60.5m, new figures show.

Accounts just filed with the Companies Office show that revenues at Sodexo Ireland Ltd declined by 3.3% from €62.6m to €60.5m in the 12 months to Aug 31 last.

The drop in revenues contributed to pre-tax profits declining from €3.3m to €2.8m.

The figures show that the numbers that the company employed last year increased from 1,322 to 1,348, with the company providing a range of services that includes corporate catering, operating staff canteens along with awardwinning restaurants.

The filings confirm the company paid a dividend of €2.9m last year after paying a dividend of €7m in 2010. According to the directors’ report “the performance of the company in the current year has been impacted by a decrease in volume leading to a decrease of 3.3% in revenue”.

The report states: “Working capital has continued to be a focus for management this year. The net current asset position of the company has decreased at Aug 31, 2011, by 9.76% to €6.9m.

The directors state: “The business also faces the challenge of improving its contract retention rate in the coming year. A number of initiatives are in place to ensure activities are focused on the ongoing management of all contracts, but particularly those considered to be at risk.”

The figures show that in spite of the increase in average staff numbers engaged in food and management services, the company’s staff costs last year declined from €31.3m to €30.3m.

The profit last year takes account of €342,000 in depreciation. The firm had accumulated profits last year of €6m with its cash in hand declining from €5.5m to €4.7m.

The firm’s cost of sales last year fell from €53m to €51m. In 2011 Sodexo Ireland spent over €17m on Irish-produced food. Figures show the firm’s operating profits fell 18% from €3.6m to €2.9m.