Kylemore serves up tasty dividend after profits as turnover rises
Irish catering group employs more than 1,000 people and serves 12m meals a year
Brian Hogan: The KSG chief executive said the catering company’s turnover rose to €58.8m in the year to the end of March 2016. Photograph: Bryan O’Brien
Catering company Kylemore Services Group (KSG), which serves some 12 million meals annually in more than 110 restaurants nationwide, saw a sharp rise in profits last year.
Shareholders of the group, which include Irish-based fuel distribution-to-technology sales conglomerate DCC, enjoyed a €1 million dividend after KSG reported pretax profits of €1.26 million for the 12 months to the end of March 2016. This compares with a profit before tax of €924,000 a year earlier.
Turnover at the group, whose retail brands include Cafe Kylemore, Quiznos, Coffee Cuisine and Pure Juice Bars, rose 8 per cent to €58.8 million from €54.1 million. For the prior year, revenues jumped 10 per cent from €49.3 million.
KSG was founded in 1920 by the Hogan family as a dairy in Birr, Co Offaly. The family offered DCC €6.54 million for its 50 per cent stake in the group in late 2015, but the offer was rejected.
Operating profits rise
Recently filed accounts for KSG, which provides contract restaurant and catering services across Ireland, show operating profits rose to €1.37 million from €1.02 million last year. Customers include Microsoft, Accenture, Deloitte, William Fry, MSD Pharma, St James’s Hospital, UCC and Dublin Airport.
“A number of new contracts commenced activity during the year and KSG will continue to invest in the business and new growth opportunities,” directors Brian Hogan and Tommy Breen (who is also chief executive of DCC) said in a note included with the accounts. “KSG believes its focus and track record will support further expansion and growth.”
In addition to its contract services, KSG also operates a 3,500sq ft City & Guilds accredited culinary training academy in Dublin.
The group employed 1,032 people in 2016, up from 995 in 2015. Staff-related costs rose to €23.3 million from €20.8 million.