Numbers employed by the main Irish arm of integrated onsite services firm Sodexo last year reduced by 17 per cent. Employee numbers at the company fell by 400 to 2,000 due to the impact of Covid-19 on the business.
Accounts show the reduction in headcount took place at Sodexo Ireland Ltd as revenues declined by 7 per cent from €106.64 million to €99.06 million.
A 10 per cent reduction in costs from €111.2 million to €99.05 million contributed to the business recording a modest operating profit of €6,000 and this followed an operating loss of €1.5 million in 2020.
The business recorded a pretax loss of €279,000 in 2021 after net interest payable and other finance costs totalled €285,000.
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In a note with the accounts the directors said the performance of the firm had been impacted by the Covid-19 pandemic “resulting in a reduction of food services of €15 million offset by €7.46 million growth across non food service lines”.
They said overall performance had been impacted by significantly reduced food service income streams and “this element has resulted in a loss of before tax of €279,000″.
Sodexo Ireland Ltd is engaged in the delivery of integrated onsite services to clients in business, industry, education, financial, pharma, healthcare and State services.
The Central Bank is one of Sodexo’s clients and purchase order lists published by the Central Bank show it paid €992,003 (including 23 per cent VAT) to Sodexo Ireland last year.
Numbers employed here by the French-owned company in food and management services reduced from 2,400 to 2,000 as staff costs reduced by €1.46 million from €60.36 million to €58.89 million.
The company in 2020 received €3.05 million in Government grants and a note with the accounts said “during 2020, the company accessed the Irish Government’s Wage Subsidy Scheme. Government grants receivable represent the reimbursement of the wages of certain employees.”
During the same year, the company paid out dividends of €3.6 million and last year the firm paid out no dividends. The company did not receive any Covid-19 wage subsidy scheme payments last year.
The profit last year takes account of €1.07 million in non-cash depreciation and amortisation costs.
The company had accumulated profits last year of €9.05 million with its cash funds increasing sharply from €181,000 to €5.9 million. Shareholder funds totalled €5.5 million.
