Pre-tax profits increased by 57pc to €8.45m at Argos Ireland last year in spite of a drop in revenues.
New accounts filed by Argos Distributors (Ireland) Ltd show that revenues fell from €219.8m to €191.49m in the 12 months to March 10, 2018.
The directors attributed the rise in profits to a decrease in net operating expenses and an increase in gross margin rate on the reduced sales. Numbers employed fell from 1,024 to 975 during the year. Last year, the company sold products from 40 stores and over the phone and internet.
The directors said that based on the profitability of the company and net assets of €48.4m, the company can continue to trade as a going concern.
It recorded a gross profit of €57.24m following cost of sales totalling €134.25m. It recorded an operating profit of €9.1m after paying out €48m in net operating expenses.
The company - owned by UK retail giant J Sainsbury plc - recorded a post-tax profit of €7.3m after it paid corporation tax of €1.1m. At the end of March 10, the company had shareholder funds of €247.4m. This included €21.12m in accumulated profits and called up share capital of €226.4m.
The cash pile rose from €12.67m to €13.75m. The profits take account of €11.8m in operating lease rentals along with non-cash depreciation costs of €1.2m.