A subsidiary of Ireland's biggest fuel group, Circle K, saw revenue plummet by more than a third last year as public health restrictions linked to the Covid-19 pandemic forced people off the roads.
Circle K Ireland Energy, which is a wholly owned subsidiary of Circle K Ireland Holding, recorded revenue of €794.6 million in the year to April 30th, 2021, as against more than €1.2 billion the year before.
The accounts also show the company repaid to the State wage subsidies and other supports it received during the pandemic. The company availed of the State’s Temporary Wage Subsidy Scheme from April 1st, 2020, to June 30th, 2020.
The company availed of the scheme for employees who were temporarily laid off or were on reduced hours. The State grant amounted to €106,000, which came on top of €76,000 the year before. The total amount of €182,000 was repaid in full after the balance sheet date.
The State grant received by the company during the current and prior year in excess of wage subsidies payable to employees amounted to €94,000, which the company refunded in October 2020.
The company’s parent has 410 sites across Ireland, and employs 2,210 people. It also operates a large commercial fuels business with more than 20 depots and two owned terminals across the country. Circle K is ultimately owned by Canadian group, Alimentation Couche-Tard.
Circle K Ireland Energy attributed its decline in revenue “to the Government’s response to the Covid-19 pandemic and its impact on the business”.
‘Significant decline’
“Periods of nationwide Covid-19 restrictions during the year resulted in a significant decline in road transport fuel volumes sold as the public’s freedom to travel around the country was curtailed,” it said.
The supply of fuel to the aviation sector “remained at low levels” after the Government imposed strict conditions on international travel.
However, strong fuel margins resulted in gross profit of €57.5 million, which was a marginal improvement on the prior year at €57 million.
A “sustained focus on cost-control” across the business throughout the year contributed to reduced administrative expenses of €58.8 million compared to €66.5 million in the prior year.
The company incurred a loss on disposal of tangible assets of €13,000 compared to €5.8 million in the prior year. This resulted in a pretax profit for the year of €800,000 compared to a pretax loss of €12.9 million in the prior year.
The company had net liabilities of €1.9 million, which were down from €42.3 million the year before, and net current liabilities of €25 million, which were down from €64.7 million.
Sales
Its cost of sales fell from €1.2 billion to €737 million in the year. Staff numbers grew from 156 to 186, while payroll costs went from €5.6 million to €8.7 million.
Its total assets amounted to €191.2 million, which was up from €178.4 million the year before, while shareholder equity was in deficit by €1.9 million, which was down from €42.3 million. The directors did not recommend the payment of a final dividend.
Despite the economic uncertainty as a result of the Covid-19 pandemic, the company said it was “well positioned to manage the impact” on the business in the short- and medium-term. In the longer term, the company said it would focus on “seeking to grow organically”.
