Pre-tax profits increase at Argos Ireland as sales drop

Pre-tax profits last year at retailer Argos increased by 18 per cent to €9.99 million.

New accounts filed by Argos Distributors (Ireland) Ltd show that the firm’s pre-tax profits increased despite revenues decreasing by 6 per cent from €191.49 million to €179.45 million in the 12 months to the end of March 9th last.

The numbers Argos Ireland employed reduced from 975 to 911 during the year.

Last year, the company sold general merchandise and products for the home from 40 stores and over the telephone and online.

Ikea to close down one of its UK stores for first time

---

Penneys to expand Dundrum presence as House of Fraser exits

---

Retailers call for emergency law to tackle insurance costs

---

Nike unaware of alleged illegal payments to elite high school basketball players

---

The company’s operating profit last year decreased by 4 per cent from €9.15 million to €8.7 million.

The directors state that the operating profit reflected a decrease in net operating expenses and a flat gross margin rate on the reduced sales.

The company enjoyed the increase in pre-tax profit after receiving €1.1 million in interest receivable and this followed interest incurred of €698,000 in the prior year.

Argos recorded a gross profit of €53.47 million following cost of sales totalling €125.97 million.

The retailers – owned J Sainsbury plc – recorded a post tax profit of €8.7 million following the company paying corporation tax of €1.27 million.

At the end of March 9th, the company had shareholder funds totalling €257.25 million. This included €29.8 million in accumulated profits and called up share capital of €226.4 million.

The company’s cash pile last year increased from €13.75 million to €18 million. The company’s profits last year take account of €11.5 million in operating lease rentals along with non-cash depreciation costs of €521,000.

The company’s operating expenses were last year made up of €34.8 million in selling costs and €9.8 million in administrative expenses.