The Eddie Rockets restaurant chain last year recorded pretax profits of €1.96 million, according to its latest accounts. However, the company’s director say that it is facing “significant challenges” that cast doubts on its future.
Revenues at Eddie Rockets (Ireland) Ltd rose by nine per cent from €8.68 million to €9.46 million.
However, revenues were some way off the pre-pandemic revenues of €19 million in 2019.
The Niall Fortune controlled company recorded the €1.96 million pretax profit after booking a non-cash €976,081 impairment reversal and receiving “other operating income” of €1.025 million.
The “other operating income” was made up of Government grants of €692,768, insurance claims receivable of €266,000 and €66,514 in net rents receivable.
The €1.96m pretax profit followed a pretax loss of €3 million in 2020 that chiefly arose from non-cash impairment charges of €2.53 million.
Across the island of Ireland, 40 restaurants operate under the Eddie Rockets brand made up of 21 in Dublin and 19 elsewhere.
The profit last year also takes account of non-cash depreciation charges of €955,692.
Operating lease charges last year increased from €942,998 to €1.046m.
Numbers employed by the business last year increased from 207 to 227 and staff costs reduced from €2.5 million to €1.95 million that takes account of Government Covid wage subsidy of €2.68 million.
A directors’ note with the accounts said that “the trading results for the year and the financial position at the year-end were considered satisfactory”.
The directors said that they have considered the performance of the business subsequent to the year end and believe “that the company is well positioned to return to full trading capacity once the current period of uncertainty and restriction passes”.
The note went on to say that “refinancing discussions with the group’s bankers successfully concluded in early 2021 which the directors believe will provide the essential working capital needed to support the business”.
The directors caution that the business faces significant challenges and uncertainties which may cast doubt on the company and group’s ability to continue as a going concern and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business for a period of at least one year from the date of the approval of these financial statements.
“However, the board remain optimistic that all actions that have been, and continue to be taken, will mitigate against these uncertainties.”
At the end of December last year, the firm’s accumulated profits totalled €2.09 million. The firm’s cash funds declined from €1.7 million to €1.05 million.
In transactions with directors, a note states that the company advanced a total of €322,857 and received repayments of €570,304 during the year.
Directors received no pay last year from the firm.
