Kylemore reports profit of €731,000

CATERING GROUP Kylemore swung back into the black last year, posting a pretax profit of €731,000, compared to a loss of €1.8 million the previous year, which reflected the impact of exceptional costs.

Accounts for Kylemore Services Group (Dining) Limited for the year ended March 31st, 2011, show that the restaurant and catering company made an operating profit of €735,000 compared to an operating loss of €1.8 million the previous year, which included a €1.3 million impairment charge.

Turnover remained stable last year at just over €30.2 million.

As well as operating 11 retail restaurants, the company has expanded into the contract catering business in recent years. The company provides in-house catering for a range of public and private sector organisations including the National Concert Hall and Chartered Accountants Ireland.

During the year, Kylemore won catering contracts with University College Dublin, Microsoft Ireland, the European Commission offices and St Vincent’s hospital.

According to the accounts, the contract services division “performed well during the year” and the company is confident of further expansion.

The restaurant business remained under pressure, however. Turnover from the restaurant business declined during the year as a result of reduced consumer spend.

The trading performance of the division was also impacted by high leasehold costs, according to the company.

During its 2010 financial year, Kylemore incurred exceptional costs of €1.33 million, including a €920,000 write-down in fixed assets, as well as a provision of €337,500 in relation to leases.

Founded in 1920, Kylemore is 50 per cent owned by industrial holdings group DCC, with the remainder of the business owned by the Hogan family.

The company employed 620 people last year, representing an increase of 20 staff.

Wages and salary costs, including pensions, totalled €11.6 million for the year to March 2011, the accounts show.

Shareholders’ funds in the group amounted to €10.5 million, while cash balances at the year end stood at €2.9 million.