British-owned catalogue retailer Argos and its DIY affiliate Homebase are thriving in the Irish market with combined pretax profits of almost €22.5 million in recently filed accounts.
Their parent, Great Universal Stores (GUS), did not provide a breakdown for the Irish business in its trading statement last week when it warned of a downturn in its overall sales in the three months to the end of March.
However, a company spokeswoman said plans to open a new Argos store in Cavan and three new Homebase outlets this year were proof of its "very positive" outlook in the Irish market.
Argos already has 22 stores in the Republic and Homebase, which bought the Texas group in 1995, has five stores in the State.
The latest Companies Office filings show that both brands are growing quickly in the Irish market with combined annual sales well in excess of €200 million.
Accounts for Argos Distributors (Ireland) Ltd show that sales for the business grew to €197.47 million in the year ended March 31st, 2004, up from €184.09 million in the previous period.
With pretax profits up to €20.66 million from €18.1 million a year earlier, the company had €56.62 million in cash in the bank at the end of its financial period. Operating profits rose to €20.48 million from €17.91 million.
The increased profits were reported despite a sharp rise in distribution costs, which increased to €27.07 million from €19.22 million.
The latest accounts for Homebase House and Garden Ltd show that pretax profits grew to €1.79 million in the year to February 28th, 2004. This was up from €37,000 a year earlier, although the accounts for the prior period covered trading in the 56 weeks ending March 1st, 2003.
Sales grew to €29.03 million in the later year from €25.35 million.
Meanwhile, it emerged yesterday that Argos is planning to expand in the UK through the purchase of 33 Index catalogue stores from fellow British retailer Littlewoods. The remaining outlets in the 163-strong chain are to be closed, leaving 3,200 staff jobless.
Index has five outlets in Northern Ireland but a Littlewoods spokesman could offer no guidance yesterday on how these shops would be affected by the Argos deal.
