The firm behind the Insomnia coffee chain last year brewed up a €9 million jump in revenues to €37.32 million 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 per cent increase in revenues, pre-tax profits declined by 80 per cent from €4.11 million to €797,236 due in part to higher costs.
The pre-tax profit of €4.11 million for 2021 was skewed by €3.2 million 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 €37.32 million revenues for last year top pre-Covid 19 revenues of €36.77 million 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 per cent rising from €25.31 million to €34.43 million.
Administrative expenses
The costs were made up of €24.99 million in administrative expenses and cost of sales totalling €9.43 million.
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.
Twenty-five 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 €1.9 million in non-cash net depreciation costs and €417,359 in a non-cash impairment of assets compared to zero under that heading in 2021.
Pre-tax profit
The group 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 €8.67 million or 31 per cent from €27.55 million to €36.23 million while UK revenues decreased from €726,925 to €1.09 million.
Numbers employed increased from 433 to 491 as staff costs increased from €10.65 million to €12.65 million.
The company continued to expand last year as it paid out €1.4 million for the purchase of tangible fixed assets.
Shareholder funds at the end of last year totalled €7.36 million, which included accumulated profits of €6.79 million. The group's cash funds increased from €1.19 million to €1.45 million.
