- November 19, 2021
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Published on Nov 17 2021 9:51 AM in General Industry tagged: Trending Posts / Celtic Linen / Causeway Capital / Harkglade
A decrease in revenues from the hospitality sector contribute to a 2020 loss for commercial laundry company Celtic Linen.
As reported by The Irish Independent, Celtic Linen experienced a €2 million loss last year as revenues from the hospitality sector plunged, and turnover at the group behind the business, Harkglade, which also services approximately 40% of the country’s hospitals, decreased to €14.1 million from €21.4 million, newly-filed accounts for the business have shown.
Celtic Linen is reportedly owned by Dublin-based private equity firm Causeway Capital, which reportedly acquired the business out of examinership in 2016.
The Celtic Linen directors reportedly noted in the accounts, “The COVID-19 pandemic and ensuing lockdown on the hospitality industry resulted in the business’s hospitality revenues coming to a sudden halt in March 2020.”
The directors reportedly added, “The business continued to provide a critical service to hospitals, though standard operating procedures reduced within hospitals, resulting in lower healthcare volumes within the plant,”, and reportedly said, “Following the lifting of the hospitality industry lockdown on June 29, 2020, hospitality volumes began returning to the plant at 40% to 50% of prior year levels through August.”
The directors reportedly added that further regional hospitality restrictions implemented in September of last year followed by a total lockdown of the hospitality sector in October reduced the company’s revenue from the hospitality trade to “minimal levels”, and, “The group continued as a critical supplier to the healthcare sector, being one of only two commercial laundries that supply to the healthcare public sector and servicing over 40% of the hospitals in the country.”
The directors reportedly said that the business was right-sized during the year to “match this new format”.
The accounts reportedly show that the group received €2.1 million in wage subsidies from the government during 2020.
The group reportedly employed approximately 328 people at the end of 2019, and the figure had reportedly dropped to 242 by the end of last year.
The accounts reportedly also show that the group behind Celtic Linen had a €6 million shareholder deficit at the end of 2020. That was reportedly up from €4 million at the end of 2019.
The group reportedly had €11.8 million in net debt at the end of 2020. It reportedly owed €11.5 million to Causeway Capital at the end of last year.
© 2021 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.
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