Staff numbers at the owner of one of Ireland's best known retail brands, Avoca reduced by almost 2,000 during the pandemic.
New accounts show that over 2021 and 2020, numbers employed by the US owned Aramark Ireland Holdings Ltd reduced by 1,952 from 5,240 prior to the pandemic to 3,288 at the end of October last.
The number of jobs lost in the 12 months to the end of October last year totalled 1,299 and this followed a decline in headcount of 653 in the prior year.
The new accounts show that pre-tax losses for 2021 narrowed by 64% from €59.89 million to €21.62 million.
The decline in pre-tax losses came as revenues reduced by €39.43 million or 16.5% from €238.2 million to €198.76 million.
During the year, the business received Government wage subsidy scheme supports of €27.4 million and this followed €15.8 million received under the same heading in 2020 - a total of €43.2 million across the two years.
The group’s redundancy costs last year totalled €4.4 million and this followed redundancy costs of €1.87 million in 2020.
With the economy fully re-opened in the current year, numbers employed in the group will have rebounded.
The accounts show that Ararmark's Food Service business was hardest hit during the pandemic with revenues declining by 31% from €111.22 million to €76.52 million while the decline in retail revenues was 10.5% from €58.06 million to €51.95 million.
Facilities management revenues increased marginally from €58.14 million to €59.77 million while property management declined slightly from €10.79 million to €10.54 million.
91% or €181.32 million of revenues were generated in Ireland with the remaining €17.4 million recorded in Great Britain and Northern Ireland.
The directors state that "the business has been significantly impacted by Covid-19 resulting in the closure of several client sites and a reduction in activity levels in many of those sites remaining open."
The directors further state that the business "has maintained a strong focus on cash generation and this was achieved mainly through contract renegotiations to reflect the difficult trading environment, continued discipline in terms of costs and by availing of Government support schemes".
They add that "these schemes were vital to our business".
The directors say that they remain positive "about the significant growth opportunities in the market and we believe that Aramark is well positioned to take advantage of these opportunities".
The directors further state that it is their intention to take pro-active actions to control the controllable "and ensure the business can thrive as we exit the pandemic".
The directors also say that the business's quality of service and strength of relationships with clients, along with various new and ongoing initiatives "are anticipated to produce a satisfactory performance in 2022".
The group’s earnings last year before interest, taxation, depreciation, amortisation and intangible impairment before one time restructuring and related costs amounted to a loss of €1.94 million compared to a loss of €10.7 million in 2020.
Directors’ pay increased from €912,000 to €1.006 million made up of emoluments of €903,000 and €103,000 in pension contributions.
At the end of October last, the group’s shareholder funds stood at €75.64 million. The group’s cash funds reduced from €31.66 million to €13.3 million.
Globally in 2021, the New York Stock Exchange listed Aramark recorded revenues of $12.09 billion - a drop of 6 per cent on the revenues of $12.8 billion in 2020.
- reporting by Gordon Deegan
