The company behind the Caffe Nero coffee shop chain reported a 34 per cent drop in pre-tax profits due to increased costs, according to its latest accounts.
The company made a pre-tax profit of €353,000 for the 12 months to the end of May 31st, 2018.
However, revenue at the company rose 36.5 per cent to €4.99 million in the same period. The company says it is continuing to expand, having opened a further two stores since May 2018, which brings the total number of outlets to 14.
The report says that the company believes “there are strong growth prospects in the branded coffee bar market in Ireland”.
Numbers employed by the company increased from 60 to 76 in 2018 as staff costs went up from €1.19 million to €1.67 million.
The company recorded the profit after taking into account non-cash depreciation costs of €485,000 and operating lease costs increasing sharply from €492,000 to €802,000.
Accumulated profits at the end of May 2018 totalled €265,000. The company’s cash funds reduced from €960,000 to €359,000.
