Pretax profits at the firm behind the Dubarry clothing and footwear brand last year declined by €1 million or 21.6 per cent to €3.77 million during “a particularly challenging trading environment”.
Consolidated accounts filed by the Ballinasloe registered FLWG Holdings Ltd show the group recorded the drop in profits after revenues decreased by 11 per cent from €27.62 million to €24.4 million in the 12 months to the end of November last.
The directors state that the year under review “was a particularly challenging trading environment, which resulted in weaker sales and tighter margins”.
“Challenges included the continued inflationary pressures combined with selling into weakening economies,” the accounts set out, adding that conditions resulted in reduced sales and squeezed margins.
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Demand in certain economies was also said to be below expectations, resulting in the group carrying higher than anticipated stock levels at year’s end.
The group’s balance sheet shows the book value of stock at the end of November 2023 totalled €11.07 million compared to €5.92 million at the end of November 2022. The directors anticipate “a slightly improved trading environment in 2024 with inflation stabilising and interest rates reducing”.
“This coupled with strong opening stock levels should combine to make 2024 an improved trading environment for the group.”
FLWG Holdings directors Eamonn Fagan, Michael Larkin and Michael Walsh said the group hopes to retain its market share in improving economies and it is continuing to look at new opportunities to expand.
Numbers employed by the business remained at 123 and Irish staff costs increased from €3.1 million to €3.3 million. Other staff costs rose from €1.97 million to €2.27 million.
Directors’ pay, including pension contributions, last year increased from €431,410 to €455,937. Pretax profit last year takes account of non-cash depreciation costs of €517,722.
The company last year recorded post-tax profits of €3.32 million after incurring a corporation tax charge of €447,804.
Accumulated profits fell from €24.55 million to €16.82 million arising from a share buy back of €11.05 million, offset by the post-tax profits of €3.32 million. Shareholder funds totalled €20.33 million and the group’s cash funds increased from €3.42 million to €4.37 million.
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