Pre-tax profits at 128 Spar shops increase to ?6m
A CHAIN of more than 100 Spar stores, previously controlled by millionaire entrepreneur John Clohisey, had a pre-tax profit of ?5.8m in 2003, up from ?3.6m, according to recently-filed accounts.
Newhill Ltd had accumulated profits of ?20m at the end of the period, and turnover for the year was ?17.6m.
The group, which owned 115 stores, mainly in the Dublin area, when it was sold in 2002 for ?47m, now has an interest in 128 outlets and receives management fees from these stores.
Mr Clohisey was paid ?1.27m for entering into a new director's services agreement when his chain of Spar shops was taken over by BWG in 2002.
An exceptional item of ?1.4m was recorded for Newhill in 2002, and the 2003 accounts state: "In the prior period the company paid an amount of ?1.27m to John Clohisey and incurred related social welfare costs in relation to the termination of his contract agreement and the entering into a new service agreement, arising on the acquisition of the Newhill group by BWG."
Newhill continues to trade as an independent business, and Mr Clohisey, along with other shareholders of Newhill Ltd, took a minority stake in the new holding company, BWG Holdings.
The company was sold to venture capitalists Electra partners two years ago at the time Electra funded the management buyout of Spar franchise owner BWG.
In 2003, directors' salaries were ?775,000, with pension contributions and other payments totalling ?79,000.
Newhill subsidiaries also paid rent on a number of premises let by Mr Clohisey under lease.