Argos wrote down the value of Irish arm by €153m before sale
The Irish arm of UK retail giant Argos last year recorded a pre-tax loss of €153.8m as a result of an exceptional cost.
The loss arose from the firm booking a €153m impairment of its entire goodwill as a result of a review of the business in the light of the recommended offer by Sainsbury's for the purchase of the owner of Argos, the Home Retail Group.
Before the exceptional cost was taken into account, Argos Distributors (Ireland) Ltd's losses last year reduced sharply, going from €2.56m to €173,000.
The directors stated that the decreased losses relate to a decrease in net operating expenses and an increase in sales. Revenues at the firm increased by 2pc, going from €223m to €227.5m in the 12 months to the end of February last.
Argos has been traditionally a catalogue retailer but also allows its customers to buy online, but in common with other 'bricks and mortar' retailers is coming under increasing competitive pressure from exclusively online retailers.
Argos currently has 40 stores around Ireland and the average revenue per store last year worked out at €5.67m.
The loss last year reduced the company's accumulated profits from €162m to €8.3m.
At the end of February last, the firm's shareholder funds stood at €232.43m - down from €391m one year earlier.
The firm's net operating expenses last year decreased from €63.3m to €56.4m, made up of selling costs decreasing from €46.15m to €41.63m and administrative expenses decreasing from €17.1m to €14.7m.
The firm's cash reduced from €26.6m to €18.9m.