Pre-tax losses soar at Irish unit of Carphone Warehouse
Exceptional costs of €3.6m contributed to the Irish arm of Carphone Warehouse recording pre-tax losses of €11.99m last year.
New accounts filed with the Companies Office by The Carphone Warehouse Ltd show that the firm recorded the €11.4m pre-tax loss as revenues declined from €123.66m to €114.1m in the year to the end of April 30 last. However, the prior period was for a 57-week period. The loss last year followed a pre-tax loss of €2.49m in 2015.
Carphone Warehouse has merged with Curry's and PC World. Following the merger, Carphone Warehouse confirmed plans to reduce the Ireland and UK store portfolio by 76.
According to the directors, this arises from the Dixons Carphone Group launching a roll out of its three-in-one store concept that involves merging the remaining PC World and Curry stores and inserting a Carphone Warehouse.
According to the directors' report "the costs associated with this initiative, being early lease termination premiums, onerous lease provisions, fixed-asset impairment and redundancy costs, have been treated as exceptional items totalling €3.6m.
The pre-tax loss last year also includes interest charges of €1m. The directors state that it is their intention to continue to develop the activities of the company.
A note attached to the Carphone Warehouse accounts states that the firm's accumulated losses of €50m reflect "an ongoing competitive market place, impacting trading margin during the financial period and provisions in respect of a property rationalisation plan".
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 parent, Dixons Carphone PLC have adequate financial resources to meet the company's requirements.