Catering firm boosted by Shannon Airport payoff

A €427,500 payoff by Shannon Airport to catering firm HMS Host for an early termination of a contract helped boost profits at the firm last year.

New accounts filed by HMS Host Ireland Ltd show its pre-tax profits increased by 48.5% to €676,320.

The chief factor was the payoff on a food and beverages contract it received from Shannon Airport.

The figures show that revenues across all its operations in Ireland increased slightly to €17.57m in 2016.

The company ceased operations at Shannon in late August last year.

In a further pull-back from its catering operations at Irish airports, HMS Host ceased operations at Cork Airport in February, after completing its contract.

The firm’s remaining airport work was at Dublin last year, where it tapped record passenger numbers.

Operating profits at the company fell 46% to €245,270 as administrative expenses increased from €7.4m to €7.6m.

The accounts show the company posted a post-tax profit of €1m, with a tax credit of €336,493.

Staff numbers increased from 211 to 220, with all but seven staff involved in sales and production. Staff costs increased from over €4.5m to €4.7m, and directors’ pay rose from €135,846 to €142,624.

The profit last year takes account of non-cash depreciation costs of €662,427.

At the end of December, the company had shareholder funds of €2.58m. Its cash pile during the year increased from €1.6m to €1.7m.

In the accounts, the directors said that the potential of a decline in passenger numbers in Ireland and changing spending habits were “an economic risk”.

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