THE HOLDING company behind the Supermac’s fast-food chain last year enjoyed a fourfold increase in pretax profits to €5.2 million.
Accounts just filed by Supermac’s Holdings Ltd reveal the company’s turnover increased by 8.7 per cent to €63 million last year from €57.9 million a year earlier.
Operating profit dropped by 7 per cent to €6.1 million from €6.6 million in 2007. However, lower exceptional costs resulted in pretax profits quadrupling to €5.2 million compared to €1.3 million the previous year.
The chief factor behind the sharp increase in pretax profits was the much lower amount written off by the company in its investment in the Claddagh Irish Pubs chain last year. The company wrote off €1.8 million of its investment in the US-based pub chain, compared to €6 million in 2007.
The latest writedown brings to €23 million the amount written off in relation to the pub chain investment over the past four years.
Supermac’s operates more than 90 restaurants in Ireland. The Galway-based company was founded by former schoolteacher Pat McDonagh. He opened the first Supermac’s outlet in Ballinasloe in 1978 and continues to be managing director of the business.
The directors are Mr McDonagh and his wife, Una. The filings show directors’ remuneration last year was €65,456 – fractionally down on 2007.
The directors recommended that no dividend be paid last year.
Expressing satisfaction with the performance, the directors state in the accounts that turnover is likely to continue along current trends as the group plans to increase the number of outlets in the Republic.
