Gate Gourmet Ireland And Aramark Holdings Ireland Record Losses For Last Year
Gate Gourmet Ireland and Aramark Holdings Ireland have recorded losses for last year.
Gate Gourmet Ireland
As reported by The Irish Independent, revenues decreased by 88% at the Dublin Airport-based arm of airline catering company Gate Gourmet last year to €2.148 million.
New accounts for Gate Gourmet Ireland Ltd reportedly show that, as a result of the 88% decrease in revenues during the 12 month period that ended on December 31, 2020, Gate Gourmet Ireland Ltd recorded a pre-tax loss of €2.65 million for last year, which followed a pre-tax profit of €1 million in 2019.
The loss figure for 2020 reportedly takes account of €1 million in operating lease expenses and €162,290 in non-cash depreciation costs.
Additionally, the company reportedly received €1.13 million in government wage subsidy scheme payments last year; the number of people it employs reportedly decreased from 131 to 108; its staff costs reportedly decreased from €5.4 million to €2.74million; the company's shareholder funds reportedly amounted to €1.59 million at the end of 2020; and the company's like-for-like volumes were reportedly 16.4% of 2019 levels.
The company's directors reportedly said in their report that this "had a significant impact on revenues and profits", and that they expect the most significant potential impact on the financial results and cashflows resulting from the COVID-19 pandemic to be in relation to when customers will resume flights and the number of passengers that will be travelling.
The directors reportedly said, "It is likely there will be a level of uncertainty for the foreseeable future. However, the company, together with the Gategroup Group, are well placed to navigate this unchartered market condition."
The company's parent, Gategroup Holding AG, recently went through a financial restructuring, which became effective earlier this year after the restructuring plan was approved in the English courts.
Aramark Holdings Ireland
Meanwhile, as reportedly by The Irish Times, newly-filed accounts for Avoca owner Aramark Holdings Ireland have revealed that the company losses increased to close to €60 million during the 12 month period that ended on October 2, 2020, from €14.9 million the previous year, after its revenue decreased to €238 million during the period from €336 million the previous year.
Additionally, the number of people employed by company reportedly decreased by 653 to 4,587 last year from 5,240 the previous year; its wage bill reportedly decreased to €103.4 million from €132.1 million the previous year; and the company reportedly received €15.8 million in wage subsidies from the Government during the 12 month period.
Its business in the Republic of Ireland reportedly accounted for the bulk of its turnover last year at €222.9 million, which was reportedly down from €300.1 million the previous year, while its unit in the UK accounted for €15.6 million, which was reportedly down from close to €30 million the previous year.
Earnings before interest, depreciation, tax, amortisation and intangible impairment before one-time profit restructuring and related costs was reportedly a loss of €10.7 million last year, which was reportedly from a profit of €3.62 million the previous, and restructuring and related costs were reportedly €31.4 million last year while intangible assets were reportedly a little less than €50 million, which was reportedly down from over €86 million the previous year.
The directors reportedly noted that the business has been "significantly impacted" by the COVID-19 pandemic, with several sites closing and others experiencing a reduction activity.
The accounts reportedly noted that costs have been tightly controlled, with contracts being renegotiated to take account of the difficult trading environment and the company utilising State support schemes, and the directors reportedly also took the decision to write down the value of intangibles as a result of changes in a number of factors, including the new growth outlook.
The accounts reportedly also noted that although the prospects of COVID-19 vaccines are encouraging, the directors took proactive action to ensure that the business could thrive despite the pandemic.
© 2021 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.