Development Capital Fund has exited from Ina’s Kitchen Desserts Ltd through the sale of the company to the founders.
Trading as Broderick's, the Broderick family established the business in 1984.
Andrew Bourg, co-founder of the Fund, commented: “During the investment term the Fund’s development and growth capital has assisted Ina’s Kitchen Desserts to grow significantly, particularly through international sales.
“The Fund’s investment drove growth by increasing production capacity to satisfy both international and domestic demand for its products. This was achieved by the Fund part-funding the purchase and fitout of a larger premises in Tallaght, Co. Dublin.
“Additionally, revenues from significant blue chip and repeat customers have been added and enhanced during the investment term, with company revenues growing by c. 54%, of which export revenues more than doubled to €9.6 million annually (77% of total revenues).”
In Association with
Bernard and Barry Broderick, who take up the position of joint Managing Director, commented: “Ina’s Kitchen Desserts continues to grow and trade profitably. To add to that we are bringing new momentum with strong investment and expertise from the food sector.”
Ina’s Kitchen Desserts Ltd had turnover of €12.1m in 2019, up 22% on the previous year. The Ebitda loss was €50,000 compared with a loss of €587,000 the year before. The operating loss was €449,000 before finance charges of €428,000, and the net loss was €768,000. The company ended the year with a negative net worth of €2.7m.
Total liabilities in December 2019 amounted to €12.5m. This included €3m in shareholder loans and €3.3m equity classed as debt. Media reports indicated that the Brodericks have borrowed c.€3m to acquire Development Capital's 75% stake.
The accounts filing shows sales outside Ireland increasing to 63% through 2019 from 52% the year before, and the company provided employment for 110 people.
Development Capital has invested in nine companies and exited from Version 1, Lifes2Good, Netwatch, Blueface, Perigord and now Broderick’s.
Development Capital Fund II recently made its first investment of €12m in Spotlight Oral Care.
Photo (l-r): Andrew Bourg, Bernard Broderick and Barry Broderick pictured in 2017 when Development Capital initially invested. (Pic: Peter Houlihan)
