Expanding Supermac’s takes away profits of €14m

Supermac’s boss Pat McDonagh saw pre-tax profits double to €14m at his fast food and hotels group.

The group broke through the €100m barrier in revenues for the first time last year, as income soared by 24.5% to €116m.

In an interview yesterday, Mr McDonagh said: “We are delighted with the results across the board for the business last year and the challenge now will be to keep it going.”

The group diversified last year, a move that has paid off as its four hotels contributed to the growth in revenues.

Last week saw the opening of the 106th Supermac’s outlet, in Charlestown, Co Mayo, and Mr McDonagh said there are plans to open four or five more outlets next year.

On the group’s performance this year, Mr McDonagh said that “the first half was particularly good”.

Accumulated profits last year increased to €71m, while the book value of the group’s property portfolio nearly doubled to €86m.

As a result of the expansion last year, staff costs increased by 25% to €27.2m.

The accounts show Mr McDonagh and his wife Una completed a €26.9m sale of property to the Supermac’s business last year, with the couple owed €10.4m from the deal at the end of 2015.

At the same time, Mr McDonagh ploughed €8.7m back into the business. He was owed €9.4m by the business at the end of 2015.

“Myself and Una had the properties in our name and we transferred them to the company. Really that was it,” he said of the property transaction.

He said the transaction was designed “to help the bottom line of the company”, adding that, to fund further acquisitions, it was good to have a strong balance sheet.