New accounts for Eddie Rocket's (Ireland) Ltd have revealed that the restaurant company is currently in the process of agreeing a deal with its lender to support the business as it emerges from the COVID-19 pandemic.
As reported by The Irish Independent, the accounts state that the pandemic has caused "a significant decline in revenues" for every Eddie Rocket's restaurant, and reveal that the company has secured credit approval for a refinancing proposal with its lender.
The refinancing discussions are ongoing, and the company's directors stated that the approval for the refinancing of its banking facilities will "provide essential capital to support the business".
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The directors also stated that "the significant restrictions placed on restaurants and the resultant sharp decline in revenues may also result in the impairment of the capitalised value of [the company's] restaurant investments", and that during periods of COVID-19-related business restrictions, "the company has sought to reduce costs where possible, particularly in relation to the rent costs of leased outlets, and has availed of relevant government supports provided to business during this time".
The directors added that the company is well positioned to return to full trading capacity following the current period of COVID-19-related restrictions and uncertainty.
At present, Eddie Rocket's is operating call-and-collect and online ordering services.
The company's new accounts also reveal that its pre-tax losses decreased by over 70% to €508,905 in 2019 while its revenues decreased from €19.49 million to €19.04 million.
Additionally, the number of people employed by the company decreased from 345 to 337 in 2019; its staff costs decreased from €7.66 million to €7.26 million; pay to directors decreased from €279,069 to €27,808; its lease costs amounted to €1.32 million; the company paid €975,000 in dividends to shareholders in 2019; and its shareholder funds declined from €4.87 million to €3.3 million.
The company's losses for 2019 take account of €1.25 million in non-cash depreciation costs and a €379,490 loan provision.
The company recorded post-tax profits of €574,418 following a €65,513 corporation tax payment.
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