Losses widen but sales soar at Deliveroo Irish arm
Losses widened by more than €1m at the Irish arm of online food delivery service Deliveroo last year, although the company’s revenues soared.
The newly-published first set of full-year accounts for Deliveroo Ireland Ltd show the business made a pre-tax loss of €2.44m in 2016.
Administration charges and cost of sales pushed that figure out from a loss of €1m in the company’s first 10 months trading in Ireland.
Revenues at the company which delivers food from restaurants which otherwise may not offer delivery services jumped from €400,541 to €2.89m. Staff costs at the company last year totalled €516,113 made up of €466,011 in salaries and €50,101 in social insurance costs.
Numbers employed by the company last year totalled eight. A note attached to the accounts states that the risk to the firm is that the business is currently in a loss-making position, which increases the risk of the company failing to meet its working capital requirements.
However, the company’s directors said the board of parent company, UK-based Roofoods Ltd, has indicated its willingness to provide additional financial support to the Irish company for at least 12 months and on this basis consider it appropriate to prepare the financial statements on the going concern basis.
In the new accounts, Deliveroo Ireland’s directors said the rapid growth of the company is a risk factor.
They warned “the business is growing at a rapid rate which could result in a loss of control”.
On-demand food delivery service Deliveroo trialled aqua deliveries out the south coast of England last week.