Revenues at the UK arm of the Smyth Toys family retail business last year increased by 3 per cent to a record £938.7m (€1.12bn).
New accounts filed by the Mayo-founded and Galway-headquartered Smyths Toys UK Ltd shows that operating profits increased by 4 per cent to £20.3m on the back of bumper sales of bestsellers, Lego, Barbie, Nerf Guns, Paw Patrol and My Little Pony toys.
The directors state that revenues increased by £28 million to £938.7 million due to an increase in footfall in the stores and the addition of two new stores.
They state that the company’s gross margin decreased slightly to 17.7 per cent in 2023, due to continued pressure on costs.
Pre-tax profits decreased by 5 per cent to £18.4 million due to net interest charges of £1.9 million that did not occur in 2022.
The firm’s buoyant performance resulted in the business paying out a dividend of £15 million and this followed a dividend payout of £30 million in 2022.
The directors state that they are pleased with the results particularly given the current economic climate and the competitive marketplace.
Numbers employed by Smyths Toys UK Ltd increased by 81 to 3,386.
The two new store openings in 2023 followed the opening of five new stores in 2022.
On the future developments of the business, the directors state that it is envisaged that further expansion will occur in the UK market in the coming years through the opening of new stores.
The number of stores in England, Scotland and Wales today totals 120 and its separate Northern Ireland arm operates seven stores and that company has yet to file its 2023 accounts.
The size of the overall business across the UK, Ireland and Europe has increased sharply in recent years with the expansion into France following the acquisition of PicWic Toys in France in July 2022.
Last year, Smyths Toys expanded its presence in France with the opening of four new stores to bring to 45 stores there and it also operates four stores in Holland.
The firm’s German business has also expanded with the opening of two new stores bringing the total to 72.
The company also has a presence in Austria and Switzerland.
The business is operated by the Smyth family from Claremorris, Co Mayo.
Staff costs at Smyths Toys UK last year increased by 17 per cent to £67.65 million.
Sourse: breakingnews.ie
