Eddie Rocket's future 'in doubt' over lockdown hit to profits

Newly filed accounts for Eddie Rocket's (Ireland) Ltd show the business suffered pre-tax losses of €3m last year, up from a 2019 loss of €508,905, while revenues more than halved from €19m to €8.68m.

The owners of the Eddie Rocket’s fast food restaurant chain have said there is “significant doubt” over whether the company can survive, due to the negative financial impact incurred due to Covid lockdown restrictions last year.

Newly filed accounts for Eddie Rocket's (Ireland) Ltd show the business suffered pre-tax losses of €3m last year, up from a 2019 loss of €508,905, while revenues more than halved from €19m to €8.68m.

'Material uncertainty'

The company’s directors said the circumstances facing the business “represent a material uncertainty which may cast significant doubt on the company’s ability to continue as a going concern”.

They said the company “may be unable to realise its assets and discharge its liabilities in the normal course of business for a period of at least one year from the date of the approval of these financial statements”.

However, the owners said they believe that the company “is well-positioned to return to full trading capacity once the current period of uncertainty and restriction passes”.

Refinancing discussions with the company’s bankers successfully concluded in early 2021 which the directors believe will provide the essential working capital needed to support the business.