Pre-tax profits at pizza group, Domino’s largest Irish franchise last year decreased by 29 per cent to €8.66 million.
New accounts show that Domino’s firm, Shorecal Ltd was making ‘lots of dough’ as revenues increased marginally from €60.26m to €61.846m in the 12 months to the end of December 25th last.
Shorecal operates about 30 of the 86 Domino’s outlets across the country and also operates outlets in Northern Ireland.
The business is majority owned by the Belfast-based Caldwell family and the accounts show that the business paid out a dividend of €20.24 million last year.
This followed a dividend payout of €8 million in 2021.
The directors state that “both the level of business and the period end financial position were satisfactory”.
Domino Pizza Group, the listed company that runs the pizza chain in Britain and Ireland, took a 15p per cent stake in the business in 2019 for €12.5 million.
The Bronfman family from the US, whose wealth was originally derived from Seagram whiskey, also owns about a third of the business.
The firm recorded a post tax profit of €7.36 million after paying corporation tax of €1.29 million.
The profit takes account of non-cash depreciation costs of €1.45 million.
The business generated sales of €42.05 million here and €19.79 million in Northern Ireland.
Numbers employed last year increased from 442 to 530 and staff costs increased from €10.49 million to €11.54 million.
After the dividend payment off-set by the profits last year, the firm's accumulated profits reduced from €27.87 million to €14.85 million.
The company's cash funds reduced from €27.25 million to €11.4 million.
A note attached to the accounts states that in 2014 the Revenue raised estimates amounting to €215,718 in respect of tax years of assessment 2010 and 2011 for subsidiary Karshan (Midlands) Limited.
An appeal against those estimates was brought before the Tax Appeals Commission and then to the High Court.
The issue for determination by the High Court was whether Domino's Pizza delivery drivers worked under contracts of service subject to PAYE and PRSI or whether they were self-employed independent contractors chargeable to tax.
The High Court upheld the finding of the Tax Appeals Commission that the delivery drivers should be treated for tax purposes as employees.
Karshan (Midlands) Limited’s appeal to the Court of Appeal, heard in July 2021, was successful.
The note states that Revenue has appealed that decision to the Supreme Court, the Company is awaiting the results of the appeal.
