Redundancy costs of €5.8m at the owner of the Avoca brand last year contributed to Aramark recording pre-tax losses of €6.96m.
New consolidated accounts filed by Aramark Ireland Holdings and subsidiaries show that the group narrowed its pre-tax losses by 38%, from €11.25m to €6.96m, in the 12 months to the end of September 2023.
The group narrowed its losses as revenues increased by 48%, from €266.24m to €314.06m.
The accounts show that despite the €5.8m redundancy pay-out, numbers employed at the Irish arm of the global integrated services group increased by 564, from 4,325 to 4,889.
The accounts show that the group's food service division was the best performing with revenues increasing by 48%, from €128.4m to €163.7m.
The directors state that "the revenue performance and indeed the reduction in the reported loss reflect both the organisations strategy to drive growth in profitability and win new business".
The principal activity of the group is the provision of integrated services including on-site catering, cleaning, facilities, energy, property management and retail.
The directors point out that earnings before interest, taxation, depreciation, amortisation (EBITDA) and intangible impairment before one-time restructuring and related costs amounted to a €12.9m profit in 2023.
That compared to €10.6m in 2022.
In an upbeat assessment, the directors state they "are confident about the long-term prospects for the company."
They state that it is their intention to continue "to take proactive actions to ensure the business can thrive despite the risks it faces".
Elsewhere in the business, revenues at the group’s facilities management increased by 9%, from €58.94m to €64m, while revenues at the group’s retail division rose by 8%, from €68.52m to €74.28m
The group’s property management revenues increased marginally to €11.84m.
The group’s revenues includes subsidiary Campbell Catering, which provides catering services for the State to several direct provision centres.
The group recorded other operating income of €10.85m and that included €10.57m in unspecified Government grants.
This followed the business receiving a combined €40.79m in Government grants in the prior two years.
The group’s staff costs last year increased by 13% or €11.62m, from €139.49m to €151.12m.
That included redundancy payments increasing from €1.62m to €5.86m. Directors’ pay last year totalled €1.44m, made up of €1.36m in pay and €81,000 in pension contributions.
The group’s combined non-cash depreciation, amortisation and impairment costs last year declined from €20.42m to €13.67m.
The group recorded €291.67m in revenues in the Republic of Ireland and €22.38m in Great Britain and Northern Ireland.
At the end of September last, the group’s shareholder funds stood at €56.57m. The group’s cash funds increased from €12.05m to €16.86m.
Globally in 2022, the New York Stock Exchange listed Aramark recorded revenues of $18.85bn - an increase of 25% on 2022. The group’s pre-tax profits increased by 233% from $255m to $851m.
Reporting by Gordon Deegan
