Avoca-owner Aramark posts jump in revenue despite redundancy costs

The accounts showed that despite the €5.8m redundancy pay-out, numbers employed at the Irish arm of the global integrated services group increased by 564 to 4,889.

Tom Neville was appointed ceo of Aramark Ireland.

Café chain Avoca owner Aramark posted redundancy costs of €5.8m last year which contributed to the company recording pre-tax losses of almost €7m.

New consolidated accounts filed by Aramark Ireland Holdings and subsidiaries also showed that the group narrowed its pre-tax losses by 38% from €11.2m to €7m in the 12 months to the end of September 2023.

The group pre-tax losses declined as revenues increased by 48% from €266m to €314m which helped offset redundancy costs.

The accounts showed that despite the €5.8m redundancy pay-out, numbers employed at the Irish arm of the global integrated services group increased by 564 from 4,325 to 4,889.

The accounts also highlighted that the group’s food service division was the best performing with revenues increasing by 48% from €128m to €164m.

The directors state that “the revenue performance and indeed the reduction in the reported loss reflect both the organisations strategy to drive growth in profitability and win new business”.

The principal activity of the Group is the provision of integrated services including on-site catering, cleaning, facilities, energy, property management and retail.

The directors pointed out that earnings before interest, taxation, depreciation, amortisation (EBITDA) and intangible impairment before one-time restructuring and related costs amounted to a near €13m profit in 2023 compared to €10.6m in 2022.

In an upbeat assessment, the directors state they “are confident about the long-term prospects for the company” They state that it is their intention to continue “to take proactive actions to ensure the business can thrive despite the risks it faces”.

Elsewhere in the business, revenues at the group’s facilities management increased by 9% from €59m to €64m while revenues at the group’s retail division rose by 8% from €68.5m to €74m.

The group’s property management revenues increased marginally to €11.8m.

The group’s revenues includes subsidiary Campbell Catering which provides catering services for the State to several direct provision centres.