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Avoca finds the right mix for €2m profit

AVOCA'S retail blend of fashion and food continued to build strong profits last year for the family business as pre-tax profits soared by 73pc to €2.07m.

New figures show that the business reaped the benefits from its continued expansion as Avoca Handweavers Ltd and subsidiaries enjoyed the increase in profits after revenues increased by 12pc from €49.72m to €55.6m in the 12 months to the end of January 31, 2013.

The business's revenues and profits were boosted by Avoca's opening of a new cafe and store in the grounds of Malahide Castle in October 2012 that created 110 new jobs.

The figures show that pre-tax profits at the group last year increased from €1.197m to €2.07m.

Numbers employed by the group last year increased from 589 to 665 with staff costs increasing from €16.48m to €18.4m. Avoca designs and manufactures its own clothing, food and home furnishings from its Wicklow base and it has 11 stores and cafes throughout Ireland.

According to the group's directors' report "the group plans to continue to develop further unique food market and cafe operations and to develop new and distinctive ranges of fashion garments and accessories".

The figures show that the increase in Avoca's operating profit was even higher at 77pc going from €1.6m to €2.86m as the group's prior pre-tax profits took account of a €371,359 profit made on the sale of land not repeated last year. The figures show that interest payments arising from the group's expansion totalling €789,862 helped reduce the group's profits.

The group enjoyed 'other operating income' last year of €121,780. The profit last year takes account of non-cash depreciation costs of €805,221.

BENEFITS

The figures show that six members of the Pratt family that make up the board, Donald, Hilary, Amanda, Simon, Ivan and Vanessa last year shared €1.43m in remuneration and pension benefits – up on the €1.294m shared in fiscal 2012.

Avoca managing director Simon Pratt said yesterday: "Against what is continuing to be a tough economic backdrop for retailers, we were relatively pleased with our performance to January 2013."

hnews@herald.ie


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