Sports retailer Elverys saw its profits dip by more than a quarter in 2022 as the cost of doing business increased.
Staunton Sports, which trades under the brand name Intersport Elverys, has filed it accounts for the financial year ended December 31st, 2022.
Elverys trades from 47 stores nationwide and online at Elverys.ie. The company is one of the largest retailers of sports goods in the country, catering for all sporting enthusiasts.
The group described its trading performance for the financial period as having “remained strong”. The company’s turnover increased to €113.9 million from €95.6 million the year before.
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The profit for the financial year after providing for depreciation and taxation amounted to €5,251,665, which was down from €7,102,115 the year before. The cost of sales increased from €53.2 million to €65.6 million.
The directors said they were “very satisfied” with the trading performance. They said the profit was impacted by inflationary pressures, supply chain disruption, payroll costs, energy costs, rent charged, input costs and exchange rates.
The company’s balance sheet shows a significant improvement on the prior year with a net asset position of €26.9 million compared to €21.7 million.
“In common with all companies operating in Ireland in this sector, Staunton Sports is facing challenges arising from other online websites including brand direct to consumer offering, supply chain disruption and inflationary pressures,” the group said.
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“However, the directors are of the opinion that the company is strongly positioned to meet these challenges.”
At the end of the financial year, the company had assets of €46.3 million, which was an increase on the €40.3 million in 2021.
The company had liabilities of €19.4 million, which were up from €18.7 million. The net assets of the company increased by €5.3 million.
The directors did not recommend payment of a dividend. “The directors have planned for continued considerable capital expenditure in updating and automating the warehouse systems and continued investment in freehold properties and shop portfolio,” the group said.
“Therefore, the directors do not envisage the payment of dividends in the coming years. The company is progressing well through its sustainability programme with solar power, water harvesting and in house waste recycling.”
The company said the directors were cautious of the “significant threats” posed to the business by inflationary pressures, continued Brexit challenges and cost of living increases “but will continue to develop the business in the ensuing year”.
“Investment in the online platform, store portfolio and warehouse automation continues,” they said. “The sustainability programme remains a focus and further investment is planned in 2023 and beyond.”
The company grew the average number of people employed at the group from 528 to 555. Staff costs increased to €14.6 million from €11.3 million.
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