New accounts filed by Select Service Partner Ireland Ltd (SSPI) show that despite the €27.55m increase in revenues, the company recorded a pre-tax loss of €2.37m for the 12 months to the end of September 27 last.
The pre-tax loss followed a pre-tax profit of €2.18m in the prior year when profits were boosted by Covid Employment Wage Subsidy Scheme payments of €2.19m.
The directors blame higher costs for the 2023 loss.
As part of a long-term contract won in 2020, SSPI operates a network of food and beverage outlets at Dublin Airport and works with Irish brands such as Bretzel Bakery, Camile Thai, Cloud Picker Coffee, Handsome Burger, Offbeat Donuts and 3fe coffee.
In their report, the directors say: “The sales were driven predominantly from continued passenger growth and opening of new stores as part of our contract requirements.”
‘The sales were driven predominantly from continued passenger growth’
They say that along with the continued passenger growth, SSPI opened further stores during this time to meet air passenger demand, with 27 stores open by the end of September 2023.
“The current year saw further growth in our capital investment, increasing our operating costs as we started to operate new concepts and brands that require time to embed in the business.
“This, together with the full year impact of higher operating costs on new units that opened in the prior year, adversely impacted our operating margin.”
They said that the business also undertook an impairment exercise resulting in a €700,000 non-cash charge.
The directors said that the company invested €9.4m in fitting out new and rebranded units in Dublin Airport, completing phase two of the transformation of the airport dining options that it won under a 12-year agreement.
They said that new additions included a new “street food” concept called The Mezz, featuring four different offerings for airline passengers while they waited for their flights.
In Terminal One, new “landside” store openings included Burger King, AMT and The Lansdowne Bar.
Staff costs increased by 40pc from €13.33m to €18.68m.
Shareholder funds last year totalled €4.2m while cash funds declined from €2.69m to €737,177.
