Kylemore bakery records €1.4m in losses

THE KYLEMORE bakery group recorded pre-tax losses of almost €1.4 million in the year to the end of March 2010 as turnover dropped and the company made a series of impairments.

Turnover at the cafe and catering company fell 8.5 per cent to €30.2 million in the period, accounts filed at the Companies Office for Kylemore Foods Holdings show.

The operating loss widened to €1.78 million, compared to €566,433 in the previous period. Before impairments and other once-off costs were taken into account, the operating loss was €443,463.

The pre-tax loss before exceptional items was €513,269, which was wider than the €312,656 pre-tax loss recorded a year earlier.

The company operates 11 retail cafes, but its focus in recent years has been on contract catering, while it is also the master franchise licence holder of the Quiznos Sub chain.

Total once-off costs came to €1.34 million. This included an impairment of around €81,500 on the value of the master franchise, an “onerous lease” provision of €337,500 and an impairment on fixed assets of €920,000, which largely related to the writedown of plant, machinery and equipment.

Ownership of the Kylemore group is split between the Hogan family, which founded its first bakery in 1920, and the Iseq-listed industrial holdings group, DCC.

The group employed an average of 604 people during the period, up from 593. Its directors are listed as Brian Hogan, who is chief executive of the company, Michael Scholefield and Thomas Breen.