Operating profits at Pat McDonagh's Supermacs group surged by 62% to €37.7m in 2021 as its city centre sites recovered from the effects of the pandemic.
Accounts signed off on Friday show Supermac's (Holdings) Ltd enjoyed the jump in operating profits in 2021 as it enjoyed its best ever revenue performance with income increasing by 38% from €141.5m to a record €195.69m.
The €195.69m in revenues compare to €189.4m in 2019, before the pandemic began, and €172.19m in 2018.
The revenues for the expanding Supermac's (Holdings) Ltd are made up of income generated from its network of fast food restaurants, motorway service areas, hotels and property.
The group recorded a pre-tax profit of €29.48m after a write-down of €7.88m in inter-company loans and interest costs of €355,041 are taken into account.
The profits are skewed somewhat by unspecified "other operating income" of €16.65m.
Covid-19 restrictions had shut down the hotel sector until early June 2021 and separate figures by Revenue Commissioners show that Supermacs availed of Covid-19 support payments of Employer Wage Subsidy Scheme (EWSS) and Covid Restriction Support Scheme (CRSS) payments in 2021.
The €16.6m followed the group receiving payments CRSS and EWSS payments of €8.2m 2020.
Numbers employed at the group also increased rising 1,443 to 1,503 as staff costs increased from €24.1m to €38.9m.
The group recorded a post tax profit of €24.08m after paying corporation tax of €5.4m.
The profit for 2021 also takes account of non-cash depreciation costs of €5.6m.
The 2021 financial performed further strengthened the group’s balance sheet with accumulated profits of €188m at the end of 2021.
The group’s cash funds increased from €34.49m to €61.58m.
The group further expanded in 2021 with €11.74m spent on acquiring property and €13.07m was spent under that heading in 2020.
A note attached to the accounts states that "the group actively seeks capital investment opportunities on an ongoing basis and intends to continue this policy for the foreseeable future".
Pat McDonagh and Una McDonagh - who signed the accounts off on January 20th - each have a 50% share in the business.
According to the directors' report "the group operates in a very competitive environment with constant pressures on margins and costs. It requires a significant market share to remain profitable, while the economic recovery in Ireland remains volatile".
Pay to directors totalled €152,425. During the year the company paid €789,104 to Pat McDonagh in respect of property leased to the company.
At the beginning of the year the company owed €6.2m to Mr McDonagh. €431,764 was repaid during the year, leaving a balance owing to Mr McDonagh at year end of €5.7m.
- reporting by Gordon Deegan