Pre-tax profits at the company that operates the Milano chain of pizzeria restaurants last year declined by 80% to €2.34m in the face of 'sector wide headwinds'.
In new accounts filed by Agenbite Ltd, they show that revenues last year increased by 5.5% from €25.48m to €26.9m.
The chief factor behind the drop in profit was a €1.27m non-cash gain made up of the reversal of previous impairments compared to a €7.53m gain under that heading in 2022.
Agenbite operates 18 Milano restaurants here and the directors state that "given the challenging trading environment experienced in the market, as well as the sector wide headwinds, the directors were satisfied with the performance against the budget".
Profits were also hit by the business last year with the firm receiving zero under the Covid-19 Employer Wage Subsidy Scheme (EWSS) and this followed €2.1m paid out under that heading in the prior year.
The profit takes account of non-cash depreciation costs of €2.9m.
On the future developments, the directors state that the company is focused on re-energising the business and estate through a comprehensive refurbishment programme that uplifts the customer experience across our pizzerias.
They state that "our strategy remains focused on our iconic brand and business, reaching full potential in existing markets across our restaurant and delivery channels."
On the market risks facing the business, they "are the high levels of competition, coupled with the very low barriers to entry".
Staff numbers at the Pizza Express owned company last year declined from 552 to 516 as staff costs reduced from €11.05m to €10.54m.
Pay to directors totalled €1.12m that included €25,000 in pension contributions.
Today, Milano operates restaurants at Dundrum, Dawson Street, Haddington Rd, Grand Canal, Temple Bar, Clarion Quay, Liffey Valley, Dun Laoghaire, Blanchardstown and the Swords Pavilion in Dublin along with outlets in Newbridge, Limerick (2), Galway, Cork (2), Ennis and Killarney.
The directors state that no restaurants were opened or closed in 2023.
The company's rental or operating lease costs last year totalled €2.84m which was down sharply on the €3.47m paid out in the prior year.
Accumulated profits at the company at the end of last year totalled €19.77m. The company’s cash pile during the year increased from €6.34m to €8.9m.
The company’s cost of sales amounted to €18.6m resulting in a gross profit of €8.3m.
The company’s post tax loss totalled €2.2m after paying €131,000 in corporation tax.
Reporting by Gordon Deegan
