Impairment charges and costs push Garvey group into the red

Impairment charges and reorganisation costs last year pushed the Co Kerry-based Garvey retail and hotel group into the red.

New figures show the family-owned business sustained a pretax loss of €1 million last year after recording a pretax profit of €504,871 in 2010.

The Garvey-owned group operates across Munster in Kerry, Limerick, Waterford and Cork, and the new filings show the group recorded the loss after impairment charges of €2 million and reorganisation costs totalling €417,663.

The figures filed by Commidare Holdings Ltd show the group’s revenues declined from €126 million to €123.6 million in the 12 months to the end of December last.

The filings show that the group’s operating profits last year declined by 68 per cent from €1.98 million to €630,055.

According to the directors’ report, “reorganisation costs of €417,663 were also incurred. Notwithstanding the difficult trading conditions, the directors anticipate improved results for 2012”.