That is according to a company spokeswoman when asked to comment on new accounts showing that expansion costs at Flipdish Ltd resulted in pre-tax losses increasing six fold to €11.3m in the 10 months to the end of January 31.
The sharp increase in the pre-tax losses at the digital ordering platform coincided with revenues increasing by 10pc from €12.7m to €13.99m.
The accounts – signed off on November 18 last – disclose that Flipdish is undergoing a restructure of the business.
The directors explain “to ensure Flipdish Ltd remains on a strong financial footing in a rapidly changing market and is equipped to grow, innovate and serve its expanding customer base, the group are carrying out a restructure which will have Flipdish Limited in a much stronger financial position”.
The spokeswoman wouldn’t be drawn on the question of whether the restructure involved job losses.
“Flipdish, like the rest of the global tech industry, has been focusing on its business fundamentals to deliver on our projected growth for 2023,” she said.
Numbers employed in the 10 months under review increased by 56pc from 157 to 245.
According to Irish Independent:
Staff costs last year almost doubled from €7.17m to €13.29m. Pay to key management personnel increased sharply from €542,696 to €1.12m.
Pay to directors increased from €389,435 to €456,294.
The firm last year became another of Ireland’s home grown tech ‘unicorns’ – a company with a value of over €1bn – 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.
At the end of last January, the firm’s shareholder funds had increased from €21.2m to €91.65m.
The company’s cash funds increased from €20.5m to €91.9m.
Founded in 2015 by brothers Conor and James McCarthy, Flipdish’s technology is used by over 7,500 customers in 32 countries generating order revenues in excess of €250m.
Irish revenues stood at €7.38m and rest-of-world revenues at €6.6m.