Kerry-based Garvey group sees revenue increase to €144.9m

The group operates multiple SuperValus outlets across Munster as well as three hotels in Kerry including the Base Hotel in Dingle

Jim Garvey in Garvey's SuperValu Rock St Tralee Co Kery.

Pre-tax profits at the Garvey family-owned retail and hotel group last year declined by 40% to €4.79m.

New accounts for the Co Kerry-headquartered Commidare Holdings UC show that pre-tax profits declined as revenues increased marginally from €141.63m to €144.96m in the 12 months to the end of January 14, 2023.

The group operates four SuperValus in Kerry (Dingle, Tralee, Castleisland, and Listowel), two each in Limerick and  Waterford, and one in Cobh, Co Cork.

Numbers employed by the expanding group last year increased by 137, from 769 to 906, as staff costs rose to €19.83m.

The accounts show that pre-tax profits declined mainly due to exceptional items that included a €2.36m loss recorded on the disposal of subsidiary entities offset by a loan write-off of €500,000. The group also incurred a €289,057 loss in the value of investments.

Profits were hit after the group received no covid-19-related Government supports during the year after receiving €1.47m in covid restriction support scheme (CRSS) and employment wage subsidy scheme (EWSS) payments in the prior year.

Hotel operations

The business started as a corner shop and the group today includes three hotels in Dingle after acquiring the no-frills Base Hotel in Dingle last year.

The group already operated Dingle Skellig and Benner hotels. The new accounts show the Commidare deal for Base Hotel was "satisfied by cash" of €1.19m last year and the business contributed €405,833 in revenues during the year.

The directors state that they are satisfied with the trading performance of the overall business for the year.

The group paid dividends of €432,761 last year. The directors disclose that in addition, an intercompany dividend was paid to Commidare Holdings LLP, as part of the disposal of subsidiaries during the year, which amounted to €1.98m.

The profit also takes account of non-cash depreciation costs of €4.39m and non-cash amortisation costs of €198,776.

The directors state that the Ukraine/Russia conflict has led to inflation here and directors state that the group “enters this uncertain period in a robust financial position with a strong balance sheet and liquidity”.

The group last year recorded post-tax profits of €4.09m after incurring a corporation tax charge of €694,484. Pay to directors totalled €733,968.

The group last year paid €6.46m to acquire tangible fixed assets and also incurred interest costs of €380,362.

Last year, directors who served during the year are listed as Tomás Garvey, Esther Garvey, Jim Garvey, Kevin McCarthy, Shane Garvey, and John Gilmartin.

Shareholder funds on January 14 last year totalled €38.7m that included accumulated profits of €38.38m.

The group’s cash funds declined from €8.79m to €6.94m.

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