Monday 1 May 2017

Return to profit for Euro General

The chain has 90 stores around the country
The chain has 90 stores around the country

Gordon Deegan

Discount retailer, Euro General last year returned to profit to record pre-tax profits of €954,348.

New accounts show that Euro General Retail Ltd returned to profit in spite of revenues decreasing by 3pc from €68.5m to €66.9m in the 12 months to the end of May 10 last.

The pre-tax profit of €954,348 followed a pre-tax loss of €1m in 2015 - a positive swing of €1.9m.

CEO, Charlie O'Loughlin opened his first discount store on Dublin's Moore Street in 1990 and the business today operates around 90 stores across the country.

According to the directors' report, the company's gross margin increased from 41pc to 43pc.

The directors state that the business opened a further four stores during the year, expanding its geographical base.

According to the directors, the results for the year and the position of the group at the balance sheet date are satisfactory.

Euro General Retail Ltd operates its network of nationwide stores and the accounts in fiscal 2016 the firm spent €369,804 on the purchase of tangible fixed assets.

The firm returned to profit in spite of the amount paid out in interest charges almost doubling - going from €284,224 to €523,949.

Numbers employed last year increased by 11, going from 604 to 615, with staff costs increasing from €11.23m to €11.54m.

The profit last year took account of non-cash depreciation costs of €2.2m.

The firm has been vocal over the high costs of rents and the figures show that the company's lease rental costs last year increased as the firm has expanded with operating lease costs increasing from €6m to €6.65m.

On May 10 last, the firm had accumulated profits of €17.3m. The firm's cash pile decreased from €1.63m to €1.35m.

Irish Independent

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