The huge expansion at Arnotts flagship Dublin store and strong trading across the group has produced a 21 per cent surge in pre-tax profits to £9.3 million (€11.8 million) from £7.7 million (€9.8 million) in the 12 months to the end of January.
The results reflect the first full-year's trading at Arnotts' enlarged Henry Street store. The £45 million investment, which almost doubled the size of the store and added car parking facilities, was well received and brought increased shoppers into Arnotts during the 12-month period, it said yesterday. Arnotts managing director, Mr Seamus Duignan, said margins had held up well in the face of intense competition from British multiples and predicted another solid out-turn in 1999.
"Trading in February and March is already well ahead of target with economic conditions continuing to look favourable," he said.
Earnings per share increased by 23 per cent to 37.1p.
Group turnover swelled to £103 million (€130.8 million) from £78.6 million (€99.8 million).
Excluding concession sales, group turnover rose from £59.1 million to £73.4 million.
Operating profits rose to £10.3 million from £7.9 million. This out-turn includes a non-recurring charge of £859,000 in the latest financial year to cover the costs of implementing extended opening hours at its stores.
Longer weekday shopping hours at the Henry Street store and Sunday opening were introduced last autumn. To date, Mr Duignan said this had lead to a substantial increase in sales and he expected that over a full-year it would fully pay for itself.
Trading at its stores in Grafton Street, Stillorgan and Boyers in North Earl Street, improved, with sales and profits up on the previous year.
Its security subsidiary, Brinks-Allied also made progress, with its new base in Northern Ireland trading profitably in its first full year. Mr Duignan said the group was satisfied with its trading performance and was no longer looking to dispose of this non-core business.
"We wouldn't sell it now on the same basis as before. We are not active in the market in that regard at the moment."
Arnotts is continuing to develop its Henry Street store, spending £11 million last year and planning to invest a further £4.8 million in the current year. This will go towards refurbishing its first floor restaurant and developing a concession outlet on the lower ground floor. In 2001 a further £2.3 million is earmarked for further development.
In January it sold its interest in a premises on Henry Street to Dunnes Stores, yielding a profit of £2.4 million for the group. The company also renegotiated the interest rate swap put in place at the time of the development in 1996 at a cost of £1.5 million.
