Business Irish

Saturday 19 October 2019

Powercity family get €3m payout as profits surge

Chain: Powercity operates 11 stores in and around Dublin
Chain: Powercity operates 11 stores in and around Dublin
John Mulligan

John Mulligan

The McKenna family behind the Powercity electrical chain was paid a €3m dividend by the firm during its last financial year, according to accounts for the business just filed at the Companies Registration Office.

But it has also warned that Brexit could hit its margins.

The firm saw its turnover rise 2.9pc to almost €88m in the 12 months to the end of last September, while pre-tax profit jumped 22pc to €6.4m. The directors of the firm noted that a well-managed cost base contributed to the profit boost. Its administrative expenses edged higher to almost €14.6m in the last financial year from just under €14m.

However, the retailer sounded a note of caution over the impact Brexit could have on its business.

"The departure of the UK from the EU could cause disruption and create uncertainty around the company's business, particularly the interaction with key suppliers," the directors noted.

They added: "The short-to-medium-term effects of this for the company are additional risks to margins caused by higher costs in the supply chain, as suppliers may seek to re-route product currently supplied from the UK, through other EU countries."

The dividend paid by the group last year is in line with the dividend paid in the previous financial year.

Powercity has 11 stores, eight of them in Dublin. One store is located in Drogheda, Co Louth, another in Naas, Co Kildare, and one in Bray, Co Wicklow.

The company is controlled by Dermot McKenna Jnr, Liam McKenna Jnr, Aidan McKenna, Colin McKenna, Sinead McKenna and Stephen McKenna.

The chain operates in a competitive environment, with rivals including Currys PC World, DID Electrical and Harvey Norman.

Earlier this week, accounts filed for Currys PC World's Irish unit showed that it made a €6.5m profit in the 12 months to the end of last April, compared to a pre-exceptional loss of almost €1.5m the year before. It got a boost from its pre-Christmas 'Black Friday' sales event, as revenue rose to €168.3m, compared to €158.4m in the previous period.

Irish Independent

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