Disposals and write-offs cancel out €2m turnover growth. Losses at the company that operates the KFC franchise across Ireland have jumped to €8.7 million from profits of €734,521 at the time of the last set of accounts.
Accounts for Herbel restaurants (Ireland) show that the company’s turnover rose from €16.1 million in March 2015 to €18.3 million at the end of December 2013. In that thirteen month period, the company registered €2 million more in food and drink sales, which pushed it gross profits from €8.7 million to €9.9 million.
However, the company’s administrative expenses rose from €6.6 million to €17.3 million, accounts show, driving the company’s operating profit from the previous set of accounts to a loss of more than seven million euro.
The notes to the accounts show that the company took losses on the disposal of unnamed fixed assets of €5.6 million as well as the write-off of intercompany loans worth €4.4 million.
As well as one Europe’s largest KFC franchises, the Herberts have substantial property holdings. The most recent accounts for Herbel Restaurants (Ireland) note that, “with respect to the company’s investment properties having a carrying value of €90.4 million, the evidence available to us was limited … owing to the unstable nature of the current property market.”