The firm behind the Eddie Rockets owned chain of restaurants returned to profit in 2023 mainly due to a €1.67m profit from the disposal of fixed assets.
New accounts filed by Eddie Rockets (Ireland) Ltd show that the company recorded the pre-tax profit of €774,827 as revenues rose by 6% from €16.45m to €17.39m in 2023.
The pre-tax profit of €774,827 followed a pre-tax loss of €1.8m in 2022 – a positive swing of €2.57m.
In accounts signed off on February 26, the directors state that the trading results for the year and the financial position at the year-end were considered satisfactory.
The Niall Fortune controlled company recorded the pre-tax profit of €774,827 after exceptional gains of €2.2m.
This related to a €1.67m profit on the disposal of fixed assets and a €530,000 reversal of an impairment of investment in subsidiary companies.
The profit also takes account of a €233,203 gain in unlisted investments.
The company also benefited from other operating income of €297,167 which was made up of insurance claims receivable of €149,073, Government grants of €97,806 and €50,288 in rents receivable.
The company’s revenues were made up of €15.67mn in in-store and delivery sales and €1.72m in franchise income.
The profit also takes account of €658,094 in non-cash depreciation costs and €494,413 in bad debts.
Operating lease costs increased from €1.19m to €1.24m.
The directors state that they believe that “the company is well positioned to return to full trading profitability”.
They said they have this belief having considered the performance of the business subsequent to the year end together with future budgets and projected cashflows.
The directors also state that their belief in the company being well positioned to return to trading profit is also due to ongoing measures taken to reduce property related and other costs, together with the debt warehousing facilities provided by the Revenue Commissioners.
But they caution that, “in the current climate, assumptions used in financial forecasting are highly dependent on unpredictable future events and therefore the company will continue to require the support of its landlords and other creditors for the foreseeable future.”
Across the island of Ireland, 38 restaurants operate under the Eddie Rockets brand – 22 are in Dublin and 16 on the rest of the island.
Numbers employed by the business in 2023 increased from 260 to 284 and staff costs increased from €5.37m to €6.44m. The company did receive Government subsidy payments of €1.03m towards wages in 2022 that did not re-occur in 2023.
At the end of December 2023, the firm’s accumulated profits totalled €859,935. The firm’s cash funds declined from €576,208 to €498,694.
Reporting by Gordon Deegan
