Catering firm well primed for Brexit as profits up 8%
CATERING and outsourcing giant Mount Charles has said it is in a “strong position” to manage risks from Brexit as it reported a 5% increase in turnover to £29.5m.
Pre-tax profits at the Belfast-based business, which was founded by Trevor Annon, who remains as company director, grew 8% to £1.3m.
As well as catering, the company sells other services to clients such as cleaning, security and the operation of vending machines. It also runs three Fed And Watered cafes — one at Bel- fast’s Obel Tower, another in Belfast International Airport and a third at Exeter Airport.
In May it won the ‘fast growth’ business award at the Aer Lingus Viscount Awards.
In a strategic report filed with the results for the year ending September 29, 2016, managing director Cathal Geoghegan said: “The performance of the company during 2016 has produced encouraging results. The UK market remains our main source of income.
“Competition remains strong and margins continue to be suppressed as a result of this together with some increases in our prime costs.”
Of its £29.5m in turnover, just £281,099 related to operations in the Republic — less than 1% of the total. But sales from the Republic had grown 9% from £258,199 a year earlier.
Mr Geogheghan described catering and cleaning as “highly competitive”.
“Many companies offer similar coverage, giving rise to aggressive pricing structures. We remain focused on client and consumer satisfaction and on our ability to act quickly to meet ever-changing customer needs,” he said.
He also expressed fears costs could rise post-Brexit: “Brexit will no doubt impact upon the economy in terms of general market volatility within the business environment in which we operate,” he added.
Risk areas included prime costs, labour costs and the firm’s ability to compete with competitors in other EU countries.
But he added: “The directors have assessed the main impacts and risks associated and are satisfied we are in a strong position to manage these risks, and furthermore in a position to act quickly to the ever-changing business landscape whilst remaining focused upon our current business and future growth objectives.”
The firm this year moved to a new HQ on Belfast’s Ormeau Road in a £1.6m investment.