Golden Discs records first profit in more than five years
Published 02/09/2014 | 14:43
Entertainment retailer Golden Discs is back in the black for the first time since it went in to examinership.
The Irish-owned music and games store said it returned a profit of almost €209,000 for the year-end in June 2013, after a deferred tax provision.
Managing director Stephen Fitzgerald said like-for-like sales also grew 7.5pc over the period.
However the company remains cautiously optimistic about the current financial year citing the industry’s dependence on a strong release schedule from the labels and studios.
“Initial indications are for a strong fourth quarter with key album releases from U2, Rihanna, The Script, Take That and One Direction,” Mr Fitzgerald added.
“On DVD Mrs Browns Boys, Love Hate, X-men and a variety of Box-sets and comedy titles are expected to perform very well.”
The chain went into examinership with debts approaching €12m in 2009 after a court petition from its largest creditor, Sony Music Entertainment.
A rescue deal was eventually agreed, with the company's one-time managing director, Tony Killoran, returning as an investor.
Losses were reduced to almost €700,000 in 2010 and €73,000 in 2011.
Golden Discs said more recent figures for the year-end to June 2014 show turnover has since grown by over 40pc and numbers employed have increased by 25pc, bringing its total workforce to 100.
The results significantly outperform (Chart-Track) statistics for Ireland which suggest CD and DVD sales declined by over 30pc in 2013.
It is considering new stores over the coming months following the success of openings in Pavilions Swords, Blanchardstown Centre, Patrick Street Cork, White Water Newbridge, Stephens Green and a pop up on Grafton Street.
“Changes to our product mix and customer orientation enhanced margins and the continuation of an aggressive cost cutting program yielded significant benefits,” Mr Fitzgerald added.