Operating profit up 17% at Aramark, despite costs

Operating profits at the Irish arm of integrated services group Aramark last year jumped by 17% to €5.8m as revenues increased.

Accounts recently filed by Aramark Ireland Holdings Ltd and subsidiaries show that the group recorded the jump in operating profits as revenues increased by 4.5% going from €223m to €233m.

The figures show that the group employs 4,061 and the vast majority of revenues were last year recorded in Ireland. According to the directors’ report, turnover has increased on food service and facilities management.

The firm increased its operating profits in spite of incurring €1.95m in costs arising from a restructuring programme. The Irish arm of the US firm paid dividends of €3m and this followed a payout of €3.5m in 2013.

The accounts show that 82% — or €190m — of revenues were recorded in Ireland with 11% in the UK and 7% in other countries.

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

The directors’ report further states: “Gross margin has decreased from 15.6% to 15.2%. The continued depressed economic climate and cost reductions, sought by clients, combined with competitive pressures has impacted on the gross profit margin.”

It adds that “operating expenses as a percentage of revenue have decreased from 13.4% to 12.7%. Effective cost control management has favourably impacted on operating expenses and savings arising from the restructuring programme have favourably impacted on operating expenses.”

The firm’s operating profits reduced sharply by €3.83m and the company recorded pre-tax profits of €90,000, down from €1.74m in 2013. A tax charge of €1.86m resulted in a post-tax loss of €1.77m for the year.

The group had a shareholder’s deficit of €6.27 at the end of the year. Its cash pile decreased from €2.9m to €2.39m

The accounts show that €141m of revenues was generated from food service with €82.74m generated from facilities management and €9m from property management. A breakdown of the numbers employed show that 3,881 were in operations and 180 in administration.