Living wage move hits profits at Lush
The first full-year payment of the living wage for staff at the Irish arm of cosmetic product retail firm Lush contributed to pre-tax profits reducing last year by 17pc to €793,374.
The drop in profits for the company's three Irish stores at Lush Dublin Ltd came as revenues increased marginally, from €4.456m to €4.55m, in the 12 months to the end of June last. The directors say revenues increased by 2.2pc and that the drop in profits largely relates to increased staff costs. They state that the increase in staff costs arise from "the first full year of paying the Republic of Ireland living wage that was implemented in April 2017".
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Numbers employed last year increased from 89 to 95 and wages increased by 19.5pc from €973,986 to €1.16m.
The company paid a dividend of €750,000 last year and on January 7 this year, the directors proposed and paid a further dividend of €800,000.
The firm recorded post-tax profits of €695,288 after paying corporation tax of €98,08
The firm's accumulated profits stood at €819,516.