Argos back in black as it rings up €6m profit
The Irish arm of retailer Argos last year returned to profit in spite of revenues declining by 3.4pc to €219m.
New accounts filed by Argos Distributors Ireland Ltd show that the company recorded a pre-tax profit of €6.37m in the 54 weeks to the end of March 11 this year.
This followed the company recording a pre-tax loss of €153m in the 52 weeks to the end of February 27 2016.
The pre-tax loss arose from a €153m in goodwill being impaired following a review of the business arising from a recommended offer for the business by J Sainsbury plc.
Argos has previously stated that the write-down to the group arising from £1.4bn sale to J Sainsbury plc was not troublesome and only an accounting matter.
Numbers employed by the Irish company last year totalled 1,024. Last year, the company sold general merchandise and products for the home from 40 stores and over the telephone and internet.
The directors state that operational profits before exceptional items were €8m which reflected a decrease in net operating expenses and an increase in gross margin on the reduced sales.
The directors state that based on the profitability of the company and net assets of €240m, the company can continue to trade as a going concern.
The company enjoyed a gross profit of €60.44m following cost of sales totalling €159.35m.
The firm recorded the operating profit of €8m after paying out €52.35m in administrative expenses.
The business had a post-tax profit of €5.4m following the company paying corporate tax of €969,000.
At the end of March 11th, the company had shareholder funds totalling €240m. This included €13.7m in accumulated profits and called up share capital of €226.4m.
The company's cash pile last year reduced from €18.9m to €12.67m. The company's profits last year take account of €12.4m in operating lease rentals along with non-cash depreciation costs of €1.6m and impairment of tangible assets of €747,000.
The company's operating expenses were last year made up of €39.75m in selling costs and €12.6m in administrative expenses.