Homebase makes an encouraging profit in Ireland

Despite making significant losses in their UK business, Homebase made a €10.75m profit in Ireland in their financial year, which ended on 28th February 2017.

In the buoyant Irish economy, total sales increased to €48.6m, up an impressive 13% on a like for like basis despite cutting Irish outlets from 12 to 11.

The retailer confirmed that a reduction in expenditure from €19.7m to just €6.6m was largely responsible for the improved position, because of the ending of the lease provision. In the previous financial year Homebase had recorded a pre-tax loss of €2.4m.

At the end of the 2017 financial year, the company employed 383 staff, down from 448, leading to a €7.6m reduction in employee costs. The company said there remained risks from "retail market conditions, competition, and consumer confidence in Ireland, especially in light of Brexit negotiations".

The next results for the UK business will be announced by Wesfarmers on 21st February 2018.

Source: Insight DIY Team

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