Integrated services group sees profits fall 28% despite revenue rise

Pre-tax profits at the Irish arm of integrated services group, Aramark, last year declined by 28.5% to €1.6m in spite of a jump in revenues.

Accounts just filed by Aramark Ireland Holdings Ltd and subsidiaries show that the group recorded the drop in profit as revenues increased by 7.6% from €207.7m to €223.5m in the 12 months to the end of September last.

The figures show that the group employs 3,882 and the vast majority of revenues were last year booked in Ireland.

Some 80% — or €180m of revenues — were recorded in Ireland with 13.5% generated in the UK and 5.6% in other countries.

Over 60% of revenues were generated from food service, with 34% generated from facilities management and 4% coming from property management.

The principal activity of the company is the provision of integrated services including on-site catering, cleaning, facilities, energy and property management services.

According to the directors’ report section of the accounts, turnover has increased across all lines of business.

“Gross margin has decreased from 16.3% to 15.6%. The continued depressed economic climate and cost reductions sought by clients, combined with competitive pressures, has impacted on the gross profit margin,” the report said.

“Operating expenses, as a percentage of revenue, have decreased from 13.7% to 13.4%. Effective cost control management has favourably impacted on operating expenses,” the report said.

The accounts disclose that the firm last year paid a dividend of €3.8m, following a €4m pay-out in 2012.

Operating profits, last year, fell by 5% from €5.35m to €5m, while a tax charge of €1.98m resulted in a post tax loss of €336,000.

The group’s cash pile increased from €2.72m to €2.9m.

The group’s staff bill increased by 5% going last year from €90.34m to €94.82m.

Directors’ pay, meanwhile, went from €959,000 to €1.04m.