Irish division of Debenhams makes profit of over €3.5m

Profits at the Irish business of British retailer Debenhams jumped by over 18 per cent last year to top €3.5 million, the latest figures show.

According to accounts filed with the Companies' Registration Office (CRO), Debenhams Retail Ireland had sales of €28.5 million in the 12 months to September 3rd 2005.

This was a 45 per cent increase on the previous year, when sales reached €19.5 million.

The company recorded a turnover from concession agreements with other operators of €21.4 million in the 12 months ended last September.

This was close to 40 per cent ahead of the comparable figure for the previous year, when turnover was €15.5 million.

The accounts show that costs accelerated at a slightly slower rate than sales growth, reaching €17.8 million in 2005 from €12.4 million a year earlier.

After a combined bill of €505,000 for distribution and administrative costs, it had operating profit for the year of €3.025 million, 10 per cent up on 2004, when its operations yielded a surplus of €2.745 million.

Interest payments of €516,000 boosted profits to leave with a pre-tax surplus for the 12-month period of €3.541 million, 18 per cent ahead of the €3 million recorded in 2004.

The balance sheet shows that the level of debt increased sharply during the year, growing to €197 million from €6.5 million. This was largely down to an increase in the amount owed to another group of companies, which grew to €11.65 million from €80,000.

However, the balance sheet remained strong, and net assets stood at €14 million on September 3rd 2005, compared with €11 million a year earlier.

Accounts for its Irish holding company, Debenhams Retail Holdings Ireland, covering the same period show that it owed Debenhams Retail Ireland €17.7 million on September 3rd 2005.

In Ireland, Debenhams has stores in Belfast, Cork and Dublin. It has 120 outlets in Britian and also has a presence in the Middle East and Far East.

Venture capitalists and management led by Texas Pacific bought the company in 2003. But it returned to the London Stock Exchange this year with a market capitalisation valuing the company at close to €3 billion.