The company that operates Bewley's Cafe on Dublin’s Grafton Street recorded pre-tax losses of €462,000 before a decision was made to shut down the business last year.
The shock closure announcement in May last year was later reversed and the business re-opened to customers last August as Covid-19 restrictions eased.
New accounts for Bewley’s Cafe Grafton Street Ltd show that the business reduced its pre-tax losses by 85% from €3.15 million in 2018 to €462,000 in 2019.
The reduction in pre-tax losses followed revenues decreasing by 4% from €5.02 million to €4.82 million.
The company recorded a post tax loss of €223,000 in 2019 after receiving a corporation tax credit of €239,000.
The business re-opened last August after the company resolved a rental dispute with a firm connected to developer Johnny Ronan, RGRE Grafton Ltd, after agreeing to the pay rent, including arrears.
The accounts show that the rental charge for 2019 was unchanged from 2018 at €1.46 million which equates to 30% of revenues for 2019.
On the impact of Covid-19, a note attached to the accounts states that the pandemic "has had a material impact on the company’s revenue, profitability and cash flows in 2020 and its impact is expected to be felt for the foreseeable future".
In response, the note states that the company reduced costs and investment in line with activity levels, applied for available Government supports and delivered a high standard of customer service within the confines of public health restrictions.
The note states that the company’s net debt in December 2020 had increased by €1.4m over 12 months to €14.6m.
On the planned re-opening of Bewley's to diners this summer as Covid-19 restrictions are eased, a spokeswoman for Bewley's said today: "We are looking forward to welcoming our customers back in Grafton Street in line with the Government's roadmap for re-opening the hospitality sector."
The accounts also disclose that in December 2020, the company transferred its ownership of certain decorative stained glass panels by the artists, Harry Clarke, Pauline Bewick, and Jim Fitzpatrick to the company's parent, Bewley’s Ltd "to enable the provision of discretionary financial support to the company by Bewley's Ltd".
The note states "that the landlord of the Grafton Street premises, RGRE Grafton Ltd has claimed ownership of certain of these artworks and has initiated legal proceedings against the company, which proceedings are being vigorously defended".
The case came before court in February and is due back in court next month after being admitted to the fast track Commercial Court list.
Numbers employed at Bewley’s Grafton Street totalled 131 as staff costs totalled €2.8 million in 2019.
The company is a subsidiary of Bewley’s Ltd and separate accounts show that the group recorded pre-tax profits of €879,000 in 2019.
This followed revenues decreasing by 2.6% from €147.63 million to €143.68 million.
The group operates cafes in Ireland, the US and the UK along with the roasting and marketing of coffee.
Numbers employed by the group totaled 1,047 as staff costs remained static at €40.8 million.
Bewley’s Oriental Cafes first opened on Grafton Street in 1927.
