Business Irish

Monday 26 September 2016

Argos and Homebase both in the red in 2014

Gordon Deegan

Published 11/12/2015 | 02:30

The loss last year at Argos followed steady profits made over a number of years in Ireland
The loss last year at Argos followed steady profits made over a number of years in Ireland

The Irish arms of UK retail giant Home Retail Group, Argos and Homebase, both incurred losses here last year.

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Pre-tax losses almost doubled at Homebase House and Garden Ltd, increasing by 89pc to €9.05m in the 12 months to the end of February 28.

Revenues declined by 4pc, from €45.3m to €43.7m.

A large factor behind the loss was the firm recording an exceptional cost of €5m concerning onerous leases.

The directors' report states that like-for-like sales increased by 4pc as the prior year saw the closure of two stores here.

The number of stores operated by Homebase at the end of February 28 last totalled 13.

In October 2013, Homebase exited the examinership process and numbers employed at Homebase fell from 515 to 491 with staff costs reducing from €9.8m to €8.6m.

Meanwhile, separate accounts by Argos Distributors Ltd show that the firm went into the red last year to record pre-tax losses of €175,000.

The loss came in spite of revenues increasing by 5.6pc, from €211m to €223m.

The loss last year at Argos followed steady profits made over a number of years in Ireland - in 2011, Argos recorded pre-tax profits here of €20m.

The firm operates 40 stores here and the chief factor behind the loss was the firm's cost of sales increasing from €141.6m to €162.2m. Numbers employed by Argos last year fell from 1,479 to 1,248 with staff costs reducing from €21.2m to €19.9m.

Accumulated profits totalled €162.16m while the firm's cash reduced to €26.6m.

Irish Independent

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