Aramark revenue up but profit down

CATERING AND facilities management giant Aramark secured a 5 per cent increase in revenues to €196 million in its Irish operations in the year to the end of September 2011, the latest accounts for the company show.

Pretax profit fell 13 per cent to €1.8 million, however, with profit after interest, tax and expenses dropping from €419,000 to just €38,000, as the company paid higher sums of interest on its loans from its parent, Aramark Corporation, and banks.

Aramark Ireland Holdings Limited and Subsidiaries, which is Ireland’s largest facilities management company and the market leader in food services, paid a dividend of €4 million to its parent company during the year, down from €5.7 million in the previous period.

The company, which employs almost 3,600 people in Ireland, saw operating profit rise 4 per cent to €4.5 million.

Aramark Ireland’s chief executive Donal O’Brien attributed its performance on revenues and operating profits to cost management, the cross-selling of its services and a contract retention rate of 99 per cent.

“We continued to perform strongly despite the challenges in our domestic market,” Mr O’Brien said.

“The underlying strength of the company’s performance in growing revenues and operating profits in a challenging environment reflects the strong value position of the company.”

The company earned almost €135 million of its turnover from contract catering and cleaning, while about €54 million came from facilities management and €7 million from property management.

About €169 million of the turnover came from its activities in the Republic of Ireland, with almost €27 million from Great Britain and Northern Ireland and €4 million from other regions.

Mr O’Brien said Aramark saw opportunities for future growth in its facilities business, including property management and environmental services.

“The business in Ireland remains strong and we are well positioned to continue to grow our business in our key sectors across the island of Ireland.”

The company employs 3,595 people in Ireland, having added 70 jobs during the accounting period. It spent almost €88 million on payroll costs. Aramark entered the Irish market in 2005 when it acquired Campbell Catering, one of Ireland’s longest-established contract catering companies, from Campbell Bewley.

In 2009 it acquired Veris, the Dublin-listed property management company, for €51 million, in a diversification strategy that reflected the ethos of its parent.

The US-owned Aramark Corporation is one of the largest outsourcing and facilities management businesses in the world, with strong roots in contract catering.