Losses narrow at Flipdish to €11.1m
With conor Picture: Conor Founder Mccarthy, Ceo Mercial James Founder Officer, And Of Chief And Mccarthy, Co Mccabe Co Flipdish, Flipdish
Pre-tax losses at Irish home-grown ’tech unicorn’ Flipdish reduced by 58.5% to €11.12m this year.
The narrowing of losses at Flipdish Ltd coincided with the firm reducing its workforce by 40% as the company moved to stem continuing losses.
The pre-tax losses of €11.12m in the 12 months to the end of January 31 this year follow pre-tax losses of €26.8m in the prior year.
Numbers employed reduced by 97 from 240 to 143 as staff costs declined by 40% from €24.05m to €14.44m.
The company’s staff costs included €877,892 in redundancy costs which was half the €1.76m paid out in redundancy costs in the prior year.
Revenue growth in the digital ordering platform company increased marginally from €18.2m to €18.73m.
The principal activity of Flipdish Limited is the provision of "white labelled technology to the restaurant sector."
The directors state that as part of this activity, Flipdish provides customers with branded websites, mobile applications, kiosks, point of sale, order ingest and stock management products.
They state that each of these products "is powered by Flipdish’s world-class software, which enables restaurants to directly accept digital orders and to manage their restaurant operations efficiently".
The company cut back on its costs as cost of sales reduced from €7.4m to €5.6m and administrative expenses were slashed from €39.06m to €25.8m due mainly to the reduction in headcount.
Staff costs include €1.06m paid to key management personnel. Pay to directors remained at the same level at €551,274.
Before the company engaged in cost cutting in 2023, the firm in 2022 became another of Ireland’s home grown ‘tech unicorn’ after a $100m investment led by Chinese conglomerate Tencent.
The funding, which followed a $48.5m investment from Tiger Global Management early in 2021, valued the company at $1.25bn.
The loss takes account of a Research and Development tax credit of €632,211 The loss also takes account of combined non-cash depreciation and amortisation costs of €1.33m. Founded in 2015 by brothers Conor and James McCarthy, Flipdish’s technology is used by more than 7,500 customers in 32 countries generating order revenues in excess of €250m.
Those customers include some of the leading brands in the industry including Cojean, Subway, Base Pizza, and Bombay Pantry.
Flipdish positions itself as an alternative to the likes of Deliveroo and Just Eat.
Tencent paid approximately $80m for close to 8% of the business.
The company’s revenues last year show Irish revenues of €7.42m and ‘rest of world’ revenues of €11.3m.
A breakdown of the numbers employed show numbers in sales reduced from 70 to 46 while numbers employed in technology reduced to 41, with 31 in operations, eight in marketing, nine in finance and eight in office.
Shareholder funds totalled €55.62m. Cash funds reduced from €57.15m to €47.14m.