The firm behind the Insomnia coffee chain last year brewed up a €9m jump in revenues to €37.32m as the business recovered from the business impact of the Covid-19 pandemic.
New consolidated accounts filed by BHJ Holdings Ltd show that in spite of the 32% increase in revenues, pre-tax profits declined by 80% from €4.11m to €797,236 due in part to higher costs.
The pre-tax profit of €4.11m for 2021 was skewed by €3.2m in Employer Wage Subsidy Scheme (EWSS) payments received that year compared to €424,728 under that heading last year.
The group operates a chain of coffee outlets here and in the UK and the €37.32m revenues for last year topped pre-Covid 19 revenues of €36.77m for 2019.
The directors state that they "are satisfied with the performance of the group in 2022 and will look to further grow the business in Ireland as well as abroad".
The business's profits took a hit due to increased costs driven by inflation and higher energy costs with the group's cost base outpacing the percentage rate of revenue growth, increasing by 36%from €25.31m to €34.43m.
The costs were made up of €24.99m in administrative expenses and cost of sales totalling €9.43m.
On the company's future developments, the directors state that the group plans to further develop and consolidate its existing activities in the coming year.
Insomnia Coffee Company is the country's leading independent coffee shop chain and the 15th largest in Europe.
25 years in business, Insomnia has grown from a single location in a Galway bookstore in 1997 to over 175 coffee shops throughout Ireland and the UK, both on the high street and in partnership with retailers such as SPAR, EUROSPAR, Londis, Mace, Central England Co-op, Eason, Meadows & Byrne and Maxol.
The company also has over 600 self-service machines in operation in Ireland and the UK.
The group's operating profits last year totalled €992,808 which take account of €1.9m in non-cash net depreciation costs and €417,359 in a non-cash impairment of assets compared to zero under that heading in 2021.
It made a pre-tax profit of €797,236 after paying interest charges of €195,572. The group had a post tax profit of €430,811 after paying corporation tax of €366,425.
The bulk of the business takes place in Ireland and the group's Irish revenues increased by €8.67m or 31% from €27.55m to €36.23m while UK revenues increased from €726,925 to €1.09m.
Numbers employed increased from 433 to 491 as staff costs increased from €10.65m to €12.65m.
The company continued to expand last year as it paid out €1.4m for the purchase of tangible fixed assets.
Shareholder funds at the end of last year totalled €7.36m that included accumulated profits of €6.79m. The group's cash funds increased from €1.19m to €1.45m.
Reporting by Gordon Deegan
