Roly's pays EUR1m in fees to directors

The Ballsbridge, Dublin restaurant Roly's Bistro was billed for more than €1 million in management and consultancy fees by its three main shareholder directors during 2003, according to accounts just filed.

Wappinger Food Corporation Ltd, which operates Roly's Bistro, made a pre-tax profit of €82,000 during the year to the end of December 2003, according to the accounts.

During the year the company was billed for €739,089 by O'Neill Restaurants (Dublin) Ltd, a company owned by John and Angela O'Sullivan, both of whom are directors and shareholders in Wappinger.

The charges were for "management and consultancy" services, according to notes to the Wappinger accounts.

The accounts recorded an outstanding debt of €345,666 due to O'Neill Restaurants at the end of the year.

Also during 2003 Wappinger ran up charges totalling €272,708 for similar services from Direct Personal & Corporate Finance Ltd, a company owned by Mr Frank McHugh.

Mr McHugh is also a director and shareholder in Wappinger. At year's end €147,708 was due to Direct Personal and Corporate Finance.

Directors' remuneration for Wappinger during 2003 was €536,778. Apart from Mr and Ms O'Sullivan and Mr McHugh, the other Wappinger directors were Mr Colin O'Daly and Mr Paul Cartwright.

According to the annual return to end-September 2004, the 10,200 issued shares in Wappinger were held by: Mr and Ms O'Sullivan, 3,455; O'Neill Restaurants, 1,600; Mr Cartwright, 600; Mr McHugh, 2,541; Mr John Mulcahy, 400; and Mr Colin O'Daly, 1,604.

Gross profit for 2003 was €4.55 million and administrative expenses were €4.44 million, giving an operating profit of €114,348, according to the accounts.

There was no dividend and retained profit going forward was €140,539.