Pre-tax profits at Pat McDonagh’s Supermac’s fast food and hospitality group last year surged by 28 per cent to a record €43.6 million.
New consolidated accounts filed by Supermac’s (Holdings) Ltd show that the group enjoyed bumper profits after revenues increased by €18 million or 7 per cent from €276.29 million to €294.37 million last year - another best ever performance revenue-wise for the expanding group.
The group’s pre-tax profits of €43.6 million were boosted by a non-cash gain of €3.74 million on the increase in the value of investment properties.
Pat McDonagh and his wife, Una are the directors of the business, and they state that “turnover continues to be strong, reflecting the strong demand for the goods and services provided by the group”.
The McDonaghs - who each own 50p per cent of the business - further state that “gross profit margins continue to perform well and, whilst the group continues to have to deal with escalating costs the directors are pleased with the performance in the year”.
The group’s cash pile increased further from €85.97 million to €111.65 million and the McDonaghs “note the strong cash position and are confident of maintaining a strong performance going forward”.
After the record performance of the group, accumulated profits at the end of December last totalled €253 million.
The group’s business include fast food restaurants, hotels and a network of motorway service station stops including the Barack Obama plaza near Moneygall just off the M7 motorway linking Limerick and Dublin.
Numbers employed at the group increased by 217 from 2,310 to 2,527 as staff costs increased from €52.98 million to €57.1 million.
The profit last year takes account of non-cash depreciation costs of €6.09 million. The group recorded post-tax profits of €36.07 million after incurring a corporation tax charge of €7.53 million.
The group last year generated net cash of €44.37 million from operating activities.
Remuneration for directors remained at the same level of €152,425.
At the beginning of 2022, the group owed €4.99 million to Pat McDonagh and €786,938 was repaid to Mr McDonagh during 2023, leaving a balance owing of €4.2 million at year's end.
During the year, the group paid €841,352 to Pat McDonagh in respect of property leased to the group.
On the main risk facing the business, the McDonaghs state that “the group operates in a very competitive environment with constant pressures on margins and costs”.
They state that “it requires a significant market share to remain profitable”.
They state that the “group carefully manages costs and margins, and its market share is increasing through sourcing strategic locations and maintaining a focused workforce and a top class customer experience".
The group last year paid out €11.1 million to acquire property, plant, equipment and investment property and received €2m from sales of investments.
