Exceptional and expansion costs at the company behind the Boojum chain of restaurants contributed to pre-tax losses at the business increasing by 48.5% to €970,778 last year.
New figures filed by Modern Restaurant Concepts Ltd show that revenues at the business increased by 28.5% from €18.46m to €23.72m in the 53 weeks to 28th April 2019.
The group's exceptional costs last year totalled €903,005.
The group’s revenues are recorded north and south and the bulk of Boojum’s growth last year occurred in the Ireland, where sales increased by 36.5% from €11.94m to €16.29m. Sales in Northern Ireland increased at a slower rate of 14% from €6.52m to €7.42m.
The casual Mexican burrito restaurant business was acquired in by Renatus Capital Partners, former rugby player Andrew Maxwell and his brother David.
David Maxwell - a 2018 EY Entrepreneur of the Year, leads the business - which had grown to 18 restaurants by the end of April last.
The brand operates outlets in Dublin, Limerick, Galway, Cork, Derry, and Belfast.
The exceptional items arose from pre-opening costs of €212,284, other non-recurring items of €314,852 and the impairment of fixed assets of €376,869.
The directors state that they recorded the impairment after the company decided not to proceed with a planned store opening.
Numbers at the business last year increased from 422 to 444 as staff costs increased from €6.4m to €8.32m.
The group’s operating profits before exceptional items last year decreased by 71.5% from €744,269 to €212,153 mainly as a result of a sharp rise in non-cash depreciation charges.
The operating profit takes account of combined non-cash depreciation and amortisation costs of €1.8m.
The group’s earnings before interest, tax, depreciation and amortisation last year remained at the same level of €2m.
The directors state that the growth in trade is predominantly the result of additional volume achieved through a successful strategic roll out programme.
They point out that "the investment in expansion naturally increased the operating expenses of the business, however pro-active cost control through the transition has ensured that earnings before interest, tax, depreciation and amortisation (EBITDA) remains in line".
They stated that "underlying performance continues at market trading levels".
On the group’s future developments, the directors state that "the group is expected to continue to benefit from substantial recent investment to open more outlets across the island of Ireland facilitating improved customer experience through greater choice and convenience".
They add: "The increased store footprint, dedicated management team and supportive stakeholder environment provides the excellent platform to execute future growth opportunities and creates capacity for the business to pro-actively respond to changing consumer habits and wider evolution within the market."
Pay to directors last year reduced from €175,449 to €155,214.
