THE IRISH arm of retailer Carphone Warehouse achieved a near fourfold increase in its profits last year, according to accounts just filed with the companies office here.
Carphone Warehouse Ltd made a profit of €1.87 million in the year to the end of March 2008. This compared with a surplus of €447,758 in the previous 12 months. A note to the accounts said this reflected “improved trading conditions”.
Its revenues rose by 22 per cent to €114.06 million, while operating profit trebled to €2.76 million.
The uplift in the phone retailer’s bottom line is due partly to an investment impairment charge of €1.28 million booked in the year to the end of March 2007, which dragged down the company’s profitability in that period.
Carphone Warehouse paid corporation tax last year of €309,621 compared with a zero bill in fiscal 2007.
At the end of 2008 Carphone Warehouse, which operates about 76 stores here, had net liabilities of €4.6 million. Its accumulated losses stood at €4.9 million, down from €6.2 million a year earlier.
Since March 2008 US electronics giant Best Buy Co has taken a 50 per cent stake in the retail and distribution business of Carphone Warehouse’s parent company. The US company intends to use the joint venture as a platform for Best Buy’s launch into Europe, with Ireland a potential target for new stores.
As part of a restructuring of the Carphone Warehouse group in advance of its deal with Best Buy, its subsidiary here sold its investment in Tele2 Telecommunications Services Ltd (Ireland) to CPW Telecoms Holdings Ltd, a related company, for €1.2 million.
The accounts indicate that Carphone Warehouse expanded its business during the year, increasing its headcount by almost 100 to 431.
Its wages and salary costs rose by 30 per cent to €12.9 million, while its total staff costs rose to €14.5 million from €11.2 million in the previous year.
Carphone Warehouse’s directors received €412,926 last year, just marginally more than in the previous 12-month period. The Irish business is led by Stephen Mackarel.
The cost to Carphone Warehouse of its property leases rose sharply last year to €4.75 million from €3.62 million in fiscal 2007.
No dividend was paid to its UK-based listed parent group.
