Operating profits at the Mercantile Group declined 84% to €95,058 in 2017.
The decrease in the pub and restaurant group's operating profit came despite its revenues rising 4% from €28.73 million to €29.7 million during the 12 months that ended on December 31, 2017.
Exceptional Costs
The drop in operating profits occurred in the wake of the group experiencing exceptional costs of €3.1 million, which included €1.6 million for a provision against related debt, closure costs of €568,590 resulting from venues being refurbished, legal and professional fees of €542,476, and additional costs of €350,889.
The directors' report stated, "2017 was an important year of growth and development for the group which delivered an increased trading profit (EBITDA - earnings before interest tax, depreciation and amortisation) of €5.1 million (pre-exceptional costs) as compared to €3.1 million in 2016".
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