Debenhams books €24.8m gain after exiting examinership
The Irish arm of UK retailer Debenhams recorded a net exceptional gain of €24.8m after successfully exiting examinership last year.
That is according to new accounts just filed by Debenhams Retail (Ireland) Ltd which show that the business recorded a pre-tax profit of €19.6m following a pre-tax loss of €5.8m in 2015.
The business made the pre-tax profit as a result of the exceptional gain and after revenues increased by 8.5pc from €166.5m to €180m in the 53 weeks to the end of September 3 last. The directors state that the firm entered examinership last year with the objective of restructuring its operations to create a competitive and sustainable business for the future following several years of losses.
According to the directors' report "the external economic and commercial environment is expected to remain uncertain and volatile in 2017".
They add: "However, the successful restructuring and exit from examinership has positioned the company well for a successful future and it has begun to implement investment plans to deliver growth going forward." A note attached to the accounts shows that the €29.36m gain arises from debts of €16.6m owed to a connected firm being written off and derivatives comprising of forward foreign currency contracts with a negative mark to market value of €12.68m written down to zero.
The gain of €29.36m was off-set by an exceptional loss of €4.4m that included the costs of redundancies within stores and dilapidation costs.
The company operates 11 department stores in the Republic - the majority of which it acquired from Roches Stores in 2006.
The firm operates stores in Dublin and in Cork along with ones in Limerick, Tralee and Waterford.
Numbers employed by the company last year reduced by 127 to 1,508 with employee costs decreasing marginally from €33.9m to €33.3m.
The loss last year takes account of combined non-cash amortisation and depreciation costs of €3.6m made up of €3.3m in depreciation and €371,000 in amortisation costs.
The firm's spend on operating lease rentals last year reduced marginally, going from €25.36m to €25.3m