The company that operates the Milano chain of pizza restaurants here last year plunged to record pre-tax losses of €13.34 million.
According to new accounts filed by Agenbite Ltd, the business recorded the loss after revenues plunged by 62% from €25.86 million to €9.69 million in the 53 weeks to the end of January 3rd, 2021.
The directors state that the decline in business was due to the impact of Covid-19 throughout the majority of the year which resulted in restaurants being closed for extended periods of time as well as reduced seating capacity due to social distancing measures.
Job losses
The enforced closures and reduced seating capacity at Milano’s restaurants contributed to the firm’s workforce almost halving from 561 to 286 during the year with the loss of 275 jobs.
The company’s operating loss for the 53 weeks was €1.31 million compared to an operating profit of €4.6 million in the prior 12 months - a negative swing of €5.92 million.
The chief factor behind the pre-tax loss of €13.3 million was exceptional costs concerning a €7.24 million impairment of right of use assets and €2.7 million impairment of property plant and equipment.
The loss also takes account of non-cash depreciation costs of €3.3 million and finance charges of €2 million.
The directors confirm that the business received €1.19 million in Government wage subsidy scheme payments.
Future developments
On the company’s future developments the directors state that the company will continue with a strategy of growth through both existing restaurants and opening new restaurants.
However, they concede that “future developments of the business are entirely dependent on how long we remain in crisis mode due to Covid-19”.
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 company’s rental or operating lease costs reduced sharply from €3.2 million to €58,000.
