Rednut, the pet food joint venture between the Queally family and Connolly’s Red Mills, reported a 6% decline in sales to €22.8m for its 2018 financial year. Accounts filed with the companies office (CRO) show the Rednut business is designed to break even every year.

The company said it saw a decline in the volume processed by the business last year.

Based in Gowran, Co Kilkenny, Rednut made an operating profit of less than €55,000 last year with operating profit margins set at a razor thin 0.25%. The company made a pre-tax profit of just over €43,700 in 2018. Net assets in the business stood at just over €4.5m.

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The accounts show that Rednut has outstanding loans of more than €1.5m from three businesses – Arrow Group and Irish Dog Foods, which are both controlled by the Queally family, and Connolly’s Red Mills.

Operating from a state-of-the-art petfood manufacturing facility in Gowran, the company employs around 40 people.