Herbert KFC franchise licking its wounds on £38m loss
The Republic of Ireland arm of the Michael and Lesley Herbert operated Kentucky Fried Chicken (KFC) franchise plunged into the red in 2015 to record pre-tax losses of €44.7m (£38m).
In documents just filed with the Companies Office in Dublin by Herbel Restaurants (Ireland) Ltd, they show that the firm recorded the losses after incurring exceptional costs of €46.59m.
The exceptional costs relate to the write down in value of the firm's property portfolio reducing from €94.6m to €47.45m.
A note attached to the accounts states that the firm's loans were sold by Ulster Bank and subsequently refinanced after the balance sheet date.
The note states that as part of that process valuations were carried out in respect of all properties and the accounts reflect the same.
It adds that the company, along with other group companies, has the necessary cash cover to meet its ongoing non-secured creditor obligations and liabilities for the foreseeable future.
The directors for the firm are listed as Michael Herbert - who is one of Northern Ireland's best known businessmen - and his wife, Lesley.
The firm recorded revenues of €9.6m in the eight months to the end of November 28, 2015.
The revenues compare to sales of €18.33m for the prior 12 months.
The firm recorded a gross profit of margin of 58% compared to 54% in the prior year.
On the firm's future developments, the directors state that they continue to seek opportunities for investment and development that fit with the company's strategic objectives. The firm received a corporate tax credit of €6m resulting in post tax profits of €36.6m. The loss resulted in the firm's shareholder funds of €28.27m becoming a shareholders' deficit of €10.37m.
A breakdown of the revenues show that it generated sale of goods totalling €7.9m.