REVENUE AT Shannon-based in-flight catering firm EFG Inflight fell by €600,000 in the 12 months to the end of May due to the impact of the Eyjafjallajökull volcanic ash cloud.

However, pretax profits at the company increased by 50 per cent to almost €1 million in the same period.

According to accounts recently filed at the Companies Registration Office, pretax profits increased by €320,814 from €642,384 to €963,198 during the 12-month period.

Managing director Ean Malone said yesterday the company’s turnover declined from €9.9 million in 2009 to €8.4 million as a result of the closure of Shannon airport at various points in April and May due to the volcanic ash cloud from Iceland, leading to the loss of €600,000 in revenues.

Forty-five per cent of the company’s business related to the provision of in-flight meals to the US military troops passing through the airport, he said.

During April and May, troop traffic was diverted to Portugal and Norway due to the ash cloud crisis, leading to a temporary loss of revenue and forcing EFG to lay off staff for a time.

EFG employs 89 people.

Mr Malone said yesterday that the longest period for which a staff member was laid off was four days.

The company was founded by three catering managers at Shannon airport – Mr Malone, Fiona Barry and Ger Connolly.

The largest contributor to the company’s almost 50 per cent increase in pre-tax profits was a 17.5 per cent reduction in staff costs from €3.6 million to €3 million, while other operating expenses declined by 26 per cent from €2.3 million to €1.6 million.

The filings also include depreciation costs of €115,855.

The company’s accumulated profits at the end of May totalled €1.6 million with the company having €1.44 million in cash.

Remuneration, including pension contributions of €369,010 to the company’s three directors, amounted to €817,833.

“We are very happy with last year and we will be reinvesting the profits to expand the business,” Mr Malone said yesterday.

The directors’ report stated that “given the current overhead base, the directors are confident of a profitable 2011. The directors also continue to explore other catering opportunities.”

EFG opened its first Zest food outlet in Ennis this year. Mr Malone said the business was outstripping expectations, with turnover 20 per cent to 25 per cent higher than anticipated.

Mr Malone said the company intended to open other Zest outlets in the midwest.