The firm behind the Insomnia coffee chain last year recorded a seven-fold increase in pretax profits to €4.1 million.
Accounts filed by BHJ Holdings Ltd show that the group’s pretax profit surged by 640 per cent as revenues increased by €2.76 million, or 11 per cent, from €25.52 million to €28.28 million.
The profits for 2021 also take account of “other income” of €3.2 million made up of Government Covid-19 Employment Wage Subsidy Scheme (EWSS) payments, which compared with €1.8 million in Covid-19 wage support payments received in 2020.
In a note with the accounts, the directors said they were satisfied with the performance of the group in 2021 “and continue to monitor and manage the impact of Covid-19″.
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On the affect Covid-19 had on the business, the note said that based on robust modelling of the impact of the crisis on trading for 2022 and 2023, the board was “confident in the resilience of the business model and access to sufficient cash flows and financing to allow the group [to] positively face the challenges ahead”.
Insomnia has grown from a single location in a Galway bookstore in 1997 to an estate of more than 170 coffee shops in Ireland and the UK.
The note said the group plans to further develop and consolidate its existing activities in the coming year.
The operating profit of €4.28 million takes into account non-cash net depreciation and amortisation costs of €1.89 million.
The group made a pretax profit of €4.1 million after paying interest charges of €165,690. The group had a post-tax profit of €3.68 million after paying corporation tax of €432,265.
The revenues for 2021 are still some way off the pre-Covid-19 revenues of €36.77 million for 2019. The Irish market contributed €27.55 million and the UK €726,925.
Numbers employed decreased from 463 to 433 as staff costs increased from €7.35 million to €10.65 million.
Shareholder funds at the end of 2021 totalled €6.93 million that included accumulated profits of €6.36 million. The group’s cash funds came to €1.19 million.
