Irish arm of Argos notes fall in profit, despite rise in revenues

PRE-TAX PROFITS at the Irish arm of catalogue retailer Argos last year declined by 11 per cent to €20.4 million in spite of a rise in revenues.

According to accounts just filed by Argos Distributors (Ireland) Ltd, revenues climbed from €205.2 million to €213.8 million in the 12 months to the end of February 26th last.

The UK-owned company operates 39 stores across Ireland, and according to the directors’ report “the increase in sales...has been to the detriment of gross profit which has fallen to €74.1 million during the year”.

The report says: “Operating costs have reduced marginally as a result of the on-going cost initiatives throughout the year.”

The directors say the impact of these moves has led to an operating profit of €13.5 million – almost half the operating profit of €25.9 million in 2009.

The company last year benefited from €7 million in finance income compared to finance expenses totalling €2.75 million in 2009.The pre-tax profit takes account of €2.96 million in non-cash depreciation costs.

The directors’ report says the company “made further operational improvements by increasing the product range available at each individual store and improving the systems, processes and layouts to enhance customer choice, service and convenience”.

At the end of February last, the company had accumulated profits totalling €149 million.

Its total equity amounted to €375.2 million that included €207 million in cash.

The figures show the numbers employed by the company last year grew by 69 from 1,274 to 1,343, with staff costs declining from €22.1 million to €21.4 million.

Source : Gordon Deegan – The Irish Times
www.irishtimes.com/newspaper/finance/2011/1222/1224309381292.html