Eddie Rocket’s profit drops as directors report puts focus on cost control

Operating profits at the firm that operates the 1950’s US-style Eddie Rocket’s chain of fast food restaurants last year dropped 36% to €598,380.

The slump came in spite of gross profits at Eddie Rocket’s (Ireland) Ltd increasing by 10% from €8.27m to €9.13m in the 12 months to the end of December last.

Company founder and owner, Niall Fortune opened the first Eddie Rocket’s in Dublin 26 years ago and, according to the directors’ report section of the latest annual accounts, “the trading results for the year and the financial position at year end were considered satisfactory by the directors”.

The group sells two million hamburgers and 1,000 tonnes of french fries each year with chicken tenders, the classic hamburger and milkshakes being the most popular items on the menu.

The firm currently operates 35 diners, 25 of which are run by franchisees and 10 directly operated by the company.

Mr Fortune has announced his intention to grow the Eddie Rocket’s brand into continental Europe as part of a planned expansion of the firm.

The firm recorded a pre-tax loss of €446,193 in 2014, arising from a €1m write-down in property value.

Numbers employed at the firm last year increased from 172 to 194 with staff costs increasing from €4.45m to €4.9m.

Remuneration for directors last year decreased from €688,174 to €528,098.

The directors’ report states the future success of the company is based on its ability to win new and retain existing customers whilst maintaining expenditure in line with sustainable revenue streams”.

The report adds that “in addition to growing revenues, the company also puts a strong focus on cost control.

Spending is reviewed on a monthly basis. This has resulted in a strong management awareness and intervention to ensure that the company remains profitable”.

The pre-tax loss last year resulted in accumulated profits reducing to €4.5m at the end of December last.

The company’s cash in hand and in bank increased from €888,183 to €1.097m.

The accounts do not provide revenue figures, as they are abridged accounts.

However, the figures show that the company’s administrative expenses increased from €7.3m to €8.5m.

The €1m write-down and interest payments of €41,405 resulted in the pre-tax loss of €446,193.

The figures show that the profit takes account of non-cash depreciation costs of €409,638 and €137,500 in amortisation of intangible assets.

The firm’s lease costs, last year, increased from €681,926 to €786,787. The directors do not recommend the payment of a dividend.