The company behind the Eddie Rocket’s burger chain is in the process of agreeing a deal with its lender aimed at supporting the business as it emerges from the pandemic.
he impact of the Covid-19 pandemic has resulted in “a significant decline in revenues” for all of the Eddie Rockets restaurant locations.
That is according to new accounts for Eddie Rocket’s (Ireland) Ltd which reveal that the group has secured credit approval for a refinancing proposal with its lender as it deals with the Covid-19 pandemic.
The company’s refinancing discussions are ongoing and the directors stated that the approval for the refinancing of the company’s banking facilities will “provide essential capital to support the business”.
The group operates at 40 sites – including 22 in Dublin – and the business is currently battling the third Covid-enforced shutdown of the hospitality industry.
The business is operating a call-and-collect service while food can also be ordered online.
The directors said that the impact of the Covid-19 pandemic on the business “has resulted in a significant decline in revenues for all of the company’s restaurant locations”.
The directors cautioned that “the significant restrictions placed on restaurants and the resultant sharp decline in revenues may also result in the impairment of the capitalised value of our restaurant investments”.
They also said that during the period of Government restrictions on the operation of restaurants “the company has sought to reduce costs where possible, particularly in relation to the rent costs of leased outlets, and has availed of relevant Government supports provided to business during this time”.
The directors said the company is well positioned to return to full trading capacity once the current period of uncertainty and restriction passes.
The new accounts show that pre-tax losses declined by more than 70pc to €508,905 in 2019.
This followed revenues declining marginally from €19.49m to €19.04m.
Staff numbers at the Niall Fortune-led company decreased from 345 to 337 in 2019 as staff costs reduced from €7.66m to €7.26m.
Pay to directors reduced from €279,069 to €27,808. The company paid €975,000 in dividends to shareholders.
The loss for 2019 takes account of non-cash depreciation costs of €1.25m. Lease costs totalled €1.32m. The loss also takes account of a €379,490 loan provision.
The company recorded post tax profits of €574,418 after paying corporation tax of €65,513.
Shareholder funds declined from €4.87m to €3.3m.