Celtic Linen losses due to expansion

EXPANSION costs at Celtic Linen Wexford contributed to the company experiencing an increase in pre- tax losses of 38 per cent to € 2.8 million in 2018, despite improved revenues during the year.

The Drinagh- based business recorded the increased losses as revenues rose by 50 per cent to € 18.48 million in 2018 from € 12.3 million in the prior 10- month period.

During 2018, Celtic Linen purchased Millbrook Linen for € 1.8 million and the merged business currently employs 300 people.

The directors stated that the transaction capped a period of significant investment for the group during the year.

This followed the completion of a major upgrade of their Wexford facility by investing in new, high- quality textiles to improve the efficiency of the business and the quality of service.

The directors stated that hey are satisfied with the performance of the business to date.

A note on the accounts for Harkglade Ltd stated that, since the acquisition, the Millbrook Linen business contributed profits of € 124,455 in 2018.

In December 2016, the company came out of a period of examinership after receiving fresh investment of € 1.39 million and striking a deal with creditors to reduce debts.

The directors stated that they are confident that their turnaround plan for the group is still on track.

‘ The concentration continues to be on growing the business in a very competitive environment while maximising efficiencies in operations and logistics’.

Employment at the company increased from 255 to 315 and staff costs increased from € 6.19 million to € 8.7 million. Directors’ pay rose from € 245,828 to € 470,826.

Causeway Capital, through its entity, Harkglade Ltd, agreed to invest € 1.39 million into the business as part of it exiting examinership.

Causeway Capital was established in 2016 by David Raethorne and Matt Scaife, who were previously involved in a number of businesses, including Helix Health and Smiles Dental.