Pre-tax profits at pizza group Domino’s largest Irish franchise increased by 16 per cent to €12.25 million in 2021.
New accounts show that Domino’s firm, Shorecal, was making ‘lots of dough’ as revenues increased by nine per cent from €55.25 million to €60.26 million in the 12 months to the end of December 26th last.
Shorecal operates about 30 of the 86 Domino’s outlets across the State and also operates outlets in Northern Ireland.
The business is majority owned by the Belfast-based Caldwell family and the accounts show that in January of this year, the business paid out a dividend of €20.24 million.
This followed a dividend payout of €8 million in 2021.
Domino's Pizza Group, the listed company that runs the pizza chain in Britain and Ireland, took a 15 per cent stake in the business in 2019 for €12.5 million.
The Bronfman family from the US, whose wealth was originally derived from Seagram whiskey, also owns about a third of the business.
The directors stated that both the level of business and the end of year financial position were satisfactory.
Impact of Covid-19
On the Covid-19 impact, the directors said that they have seen “a significant effect on its trading activities as a result of the virus”.
The directors added that they are confident that the group has the necessary financial resources and liquidity asset to get through this uncertain period.
On the performance of the business since the end of last year, the directors said that the Covid-19 pandemic continues to have a negative effect on its trading activities.
The firm recorded a post tax profit of €10.34 million after paying corporation tax of €1.9 million.
The profit takes account of non-cash depreciation costs of €1.4 million.
The business generated sales of €40.7 million here and €19.49 million in Northern Ireland.
Numbers employed last year reduced by 74 from 516 to 442 and staff costs increased from €9.9 million to €10.49 million.
Accumulated profits stood at €27.87 million as its cash funds increased sharply from €15.2 million to €27.5 million.
The company said it is awaiting a Court of Appeal ruling on its challenge to a tax assessment that one of its businesses wrongly treated its delivery drivers as self-employed independent contractors. The case was heard last July.
The Revenue argued the drivers should be treated as employees for tax purposes. Shorecal’s Karshan (Midlands) business has subsequently lost appeals to the Tax Appeals Commission and the High Court in what was the first “gig economy” ruling from an Irish court.
The case dates back to a 2014 Revenue €215,718 assessment on Karshan’s tax treatment of its delivery drivers in 2010 and 2011.
The note states that in the event that the appeals is unsuccessful, the directors are of the opinion that the possibility of a liability behind the Revenue estimates for 2010 and 2011 is remote.