Pre-tax profits at department store group Arnotts rose last year to €15.65 million (£19.89 million) from €14.23 million. But operating margins fell back slightly, to 9.54 per cent from 10.1 per cent year-on-year.
As revenues in the year to January 31st rose by 15.7 per cent to €175.06 million from €151.35 million on the previous comparable period, operating profits rose to €16.7 million from €15.29 million.
The group's secretary, Mr Paul Donnelly, attributed the decline in margins to wage increases in the final quarter of the year, which averaged 20 per cent, and interest charges on a €2.2 million loan used to buy 1.8 per cent of its own share capital last June.
Its chief executive, Mr Seamus Duignan, said the group was "trading very well" in Dublin. Arnotts would invest £6 million in its stores this year, he said. In addition to ordinary capital expenditure of £1 million, a £2 million refurbishment at Grafton Street was complete and the store would reopen next Saturday. The balance would be used to update the group's IT systems, install six escalators at its Henry Street outlet and upgrade its furniture, carpets and accessories departments.
Arnotts planned to invest £4 million refurbishing its Boyers outlet on North Earl Street in 2002, he said.
Its share closed unchanged at €6.60 in Dublin yesterday.
Adjusted earnings per share rose to 67.5 cents from 59.2 cents. The group proposed a final dividend of 19.05 cents, 2.54 cents more than a year earlier. The overall dividend was 27.03 cents, up from 23.49 a year earlier.
