Covid payments take Boojum chain to £2.1m profit

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The Boojum burrito chain, controlled by Northern Irish businessman David Maxwell, grew to operating profit of £2.1m in its most recent financial year.

t had made an operating loss of £1m in the previous financial year.

The chain currently operates around 10 stores in the Republic and four in Northern Ireland. Its most recent Dublin location opened in Blanchardstown late last year.

Founded in 2007, the chain was acquired in 2015 via a management buy-in backed by private equity firm Renatus.

Accounts filed this week for the Belfast-based company behind the chain, Modern Restaurant Concepts, show revenue fell 13 per cent to £18.6million in the 12 months to April 25 last year.

Its sales generated £11.9m in the Republic.

It received an additional £2m in Covid-related employment grants during the period.

“The sales variance reflects the significant and prolonged impact of the Covid-19 pandemic, which has depressed demand over this period,” the directors noted in the accounts.

“While overall sales levels have declined, they have also become more concentrated, first by necessity and later by design, with average sales per open store up 7 percent compared to two years earlier,” they said.

Directors said higher gross margin last fiscal year was due to lower sales tax rates, a more favorable revenue mix and tighter cost controls.

“Management’s investment in pre-Covid-19 digital innovation, coupled with the appeal and convenience of Boojum’s offering to delivery and click-and-collect customers, has enabled the company to grow from 100 PCs in the first three months – Online trading model comes at a time when most other restaurants have closed,” they explained.

Directors said the average weekly turnover rate through April last year was 90 percent higher than at the start of the year and just 8 percent below the same period in April 2019.

“The shift to digital platforms during the period was transformative and inspired management to carefully review the number of physical outlets required to support the new form of commerce activity,” they said.

“As a result, the directors made the strategic decision to consolidate operations into fewer branches to create a leaner, more profitable estate.”

https://www.independent.ie/business/irish/covid-payments-push-boojum-chain-to-21m-profit-41463698.html Covid payments take Boojum chain to £2.1m profit

Fry Electronics Team

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