Losses widen but sales soar at De­liv­eroo Ir­ish arm

Irish Examiner - - Business - Gor­don Dee­gan

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”.

Pic­ture: Matt Alexan­der/PA

On-de­mand food delivery ser­vice De­liv­eroo tri­alled aqua de­liv­er­ies out the south coast of Eng­land last week.

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