Saturday 22 October 2016

Irish arm of Carphone Warehouse in €2.4m loss as revenues hit €123m

Gordon Deegan

Published 13/04/2016 | 02:30

Directors noted ‘competitive marketplace’, impacting margins
Directors noted ‘competitive marketplace’, impacting margins

The soaring numbers of people purchasing smartphones wasn't enough to prevent pre-tax losses at the Irish arm of Carphone Warehouse mounting last year.

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New accounts filed by The Carphone Warehouse Ltd with the Companies Office show that the firm recorded a €2.4m pre-tax loss in spite of revenues rising from €119.6m to €123.6m in the 57 weeks to the end of May 2 last.

The losses of the past two years are substantially down on the pre-tax loss of €9.69m in 2013 and this followed a pre-tax loss of €9m in fiscal 2012.

The figures from ComReg for the second quarter of 2015 shows that 73.7pc of Irish mobile subscribers are accessing 'advanced data services' on their phones, eg web content, video and music streaming.

A note attached to the Carphone Warehouse accounts states that the firm's accumulated losses of €38.6m reflect "an ongoing competitive market lace, impacting trading margin during the financial period".

The note states that the directors have reviewed budgets and cash projections for the 12 months from the approval of the accounts and with the support of its parent, Dixons Carphone plc, have adequate financial resources to meet requirements.

The first Carphone Warehouse opened in Ireland on Dublin's Grafton Street in 1996 and the business is today the country's largest independent communications retailer, operating 119 stores nationwide and employing 1,050 staff.

The firm has shareholder funds of €6.7m thanks mainly to a cash injection of €45m in 2013.

The losses last year take account of non-cash depreciation costs of €1.79m while the firm's operating lease costs jumped from €6.309m to €7.183m.

Numbers employed increased from 674 to 686 and the figures show that they are broken down between 684 in sales and administration with two in management. Staff last year rose by 15pc, from €15.9m to €18.43m.

The figures show that remuneration to directors last year increased from €212,775 to €320,631 while certain remuneration is borne by a fellow group company.

The loss last year takes account of net interest charges of €646,587. Cost of sales rose from €86.45m to €90.1m. The directors state that "it is their intention to develop the activities of the company".

Irish Independent

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