Pre-tax profits plunge 31pc at Argos's Irish arm
Pre-tax profits at the Irish arm of Argos last year decreased by 31pc to €14.1m, new figures show.
According to accounts just filed by Argos Distributors (Ireland) Ltd to the Companies Office, they show that revenues at the firm increased marginally from €213.8m to €214.6m in the 53 weeks to the end of March 3 last year.
The prior period was for 52 weeks and the figures show that the number of stores Argos operates in Ireland increased by one to 40 last year, with the firm employing an additional 105.
The pre-tax profits decreased from €20.4m to €14.1m, with higher operating costs and finance income decreasing by 42pc from €7m to €4m being the main factors behind the drop in profits.
The directors state: "The company will continue to tightly manage costs.
"However, further operational and customer improvements will continue to be implemented and operational standards developed, with an emphasis to ensure that the company remains well-positioned to capitalise on the longer-term recovery in the market condition in Ireland."
The figures show that the UK-owned catalogue retailer's operating profits last year reduced by 24pc from €13.5m to €10.2m as a result of operating costs increasing marginally.
The filings show that the firm's net financing income of €4m contributed to profits increasing to €14m.
The accounts show that the firm had accumulated profits of €161.8m with shareholder funds totalling €389.4m. The firm's cash stood at €22.6m.
The figures show that the numbers employed by the company increased by 105 during the year from 1,343 to 1,448, with the company's staff costs declining marginally from €21.4m to €21.3m, the figures show.
The firm's cost of sales increased by 1pc from €139.8m to €141.4m resulting in a gross profit of €73.1m.
Its net operating expenses last year increased from €60.5 to €62.9m, made up of selling costs increasing from €49m to €50.4m and administrative expenses increasing from €11.5m to €12.5m.
The figures show that the firm's spend on operating leases increased marginally from €12.41m to €12.44m.
The accounts show that the firm's profit takes account of non-cash depreciation of €2.9m last year.
The directors did not recommend the payment of a dividend last year.