Losses at company behind State’s Five Guys franchise halved last year

Losses at the company behind the Five Guys franchise in the State more than halved to €504,645 last year, as the business deals with the impact of Covid-19.

Sons of billionaire financier Dermot Desmond, Brett, Ross and Dery, brought the US fast food franchise to Ireland in 2016.

Five Guys operates four outlets around Dublin at South Great George's Street, Blackrock, Swords, and the Dundrum shopping centre.

Numbers employed in the outlets increased from 96 to 102 in the 12 months to the end of March last year, when the franchise was beginning to be impacted by Covid-19.

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The impact of Covid-19 restrictions has resulted in Five Guys’s city centre outlets only providing a collect and delivery service.

New accounts lodged by the Desmond brothers' Anart Restaurants Ltd show that the company recorded losses of €505,645 in the 12 months to the end of March last.

This loss takes account of non-cash depreciation costs of €401,693.

It also followed losses of €1.1 million in the prior fiscal year.

At the end of March 2020, Anart Restaurants Ltd’s accumulated losses totalled €2 million.

Covid-19 impact

A note attached to the accounts said that the “impacts of Covid-19 may have an adverse impact on the results of operations, financial position and cash flow in 2021”.

The note adds that “management is continuing to monitor Government guidance, including a review of the current situation in relation to Covid-19”.

The directors state that they are confident that the company “will recommence full trading once the period of restriction is lifted”.

The amount owed to group undertakings last year increased by €276,103 from €3.94 million to €4.22 million.

“Management has received confirmation from all group companies that they will show forbearance, if required in demanding amounts due to them,” the note said.

The Desmond brothers also operate the Five Guys franchise in Northern Ireland.