Pre-tax profits at department chain, Shaw & Sons declined by 68.5 per cent to €787,595 last year.
Accounts show that Shaw & Sons Ltd recorded the drop in profits after revenues increased by 2 per cent from €68.79 million to €70.5 million in the 12 months to the end of January 28th, 2024.
Numbers employed increased from 686 to 702 made up of 554 in retail sales, 127 in administration and management while numbers employed in warehousing and online fulfilment increased from 13 to 21.
Staff costs increased from €17.5 million to €18.37 million.
In the year under review, the company paid dividend of €225,000.
The directors state that will continue “to build on the significant progress made in becoming a successful omnichannel retailer”.
The principal activity of the company is the operation of sixteen department stores throughout Ireland while it also operates a number of investment properties from which rental income is received.
The directors state that on 29th January 2023 the company merged the remaining five of its trading subsidiaries by absorption in accordance with the provisions of the Companies Act 2014.
They state that the purpose of this process “is to reduce the reporting required by having numerous subsidiaries, and to reduce the burden of having to maintain separate accounting records for these subsidiaries”.
The group’s gross profit declined marginally from €28.7 million to €28.65 million and operating profits declined by 67 per cent from €2.56 million to €847,687.
This was mainly due to administrative expenses increased by 6pc from €26.13 million to €27.8 million.
The company’s profits reduced further due to net interest costs of €60,092. The profit takes account of non-cash depreciation costs of €1.37 million.
The company recorded a post tax profit of €677,013 after incurring a corporation tax charge of €110,582.
The profits further strengthened the group balance sheet with accumulated profits increasing to €36.77 million at the end of January last.
Shareholder funds totalled €48.76 million that included cash funds of €8.14 million.
Pay to directors reduced from €1.53 million to €1.45 million comprising €1.29 million in emoluments and €169,064 in pension contributions.
A note states that “Shaws is a family company with multiple family members from several generations currently working in the business.
“The impact of section 306 is that all family members, most of whom are not on the board, are included in the above figures along with the executive and non-executive directors.
The directors state that the primary risks which the group has exposure to include a reduction in footfall as customers move to online shopping; general economic uncertainty, resulting in particular from pressure on customers discretionary spending and ongoing inflationary pressures across the supply chain and operating costs.
Sourse: breakingnews.ie
