A firm which was investigated over its childcare provision received €5.79million in Covid-19 wage supports.
Deirdre and Padraig Kelly run Links Childcare and operate 11 creches around Dublin.
They were closed during the pandemic and accounts show their main firm The Links Creche & Montessori Ltd received the multi-million euro grants between 2020 and 2021.
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It operates eight of the group’s 11 childcare facilities and the €4.25million in Government grants received in the 12 months to the end of October last followed €1.539million paid in 2020.
A note attached to the accounts states that as a result of the significant impact of the pandemic, the directors decided to claim available supports, “including those associated with payroll subsidies through the Temporary Wage Subsidy Scheme and Employee Wage Subsidy Scheme, in the current and previous financial years”.
The Links Creche & Montessori Ltd received the State supports – in common with tens of thousands of other companies during the pandemic – in order to retain staff and be viable once restrictions had eased.
The €4.25million was mainly made up of wage subsidy supports which is paid to the company’s 173 employees but appears as “other operating income” on the profit and loss account.
The income skewed the profits recorded by the firm for the year where the accounts show it recorded post-tax profits of €4.03million. The year before the sum was €817,658.
The abridged accounts don’t disclose the business’s revenue for the year but the Covid-19 enforced closures would have put a large dent on company revenues.
The €4million profit for last year resulted in the company having accumulated profits of €7.25million at the end of last October.
Its cash funds increased from €1.61million to €2.81million. Underlining the expansion of the business during the year under review, the book value of the company’s fixed assets increased from €1.2million to €2.7million.
The profits last year take account of non-cash depreciation costs of €103,824.
The Kellys paid themselves an aggregate €175,200 last year and this followed an aggregate €127,489 to the pair in 2020.
In 2013, the Links Abington creche in Malahide was the subject of an RTE Breach of Trust documentary.
In 2015, Links Creche & Montessori Ltd was fined €1,000 at Dublin District Court after pleading guilty to eight charges pertaining to incidents which occurred on eight different dates across February and March in 2013.
In 2016, High Court settlements totalling more than €1million were approved for 22 children in cases arising out of the RTE documentary.
The settlements were without admission of liability.
The defendants had filed a full defence and denied the incidents recorded in the footage were representative of the level of care throughout the creche.
The business’ website claims Links Childcare “aims to provide the highest standard of care throughout our comprehensive range of services, from nursery through our Early Childhood Care and Education Programme to after school”.
It states: “We aim to provide a service which is a ‘home away from home’ for your daughter or son.”
The Kelly’s creche business was established in 2004.
Since then it has grown rapidly to operate 11 facilities with premises at the upmarket Abington in Malahide along with creches at Balbriggan, Citywest, Clonee, Blackrock, two at Portmarnock, Manor, Drumcondra, Clontarf and Kinsealy.
The accounts show The Links Creche and Montessori has provided loans totalling €3.06million to a connected firm, P Kelly Villas Ltd, including €1.56million last year.
The accounts disclose on a post balance sheet event the business was restructured where the firm’s entire share capital is to be acquired by Links Childcare Holdings Limited.
The note states that Links Childcare Holdings Limited is controlled by the directors and their connected parties.
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