Electrical retailer Power City, famous for its brash adverts, has increased its pretax profit by 5.19 per cent to €8.62 million, newly filed accounts reveal.
The increase in profits came as the company reported only a modest rise in sales in the year to September 2005, with turnover rising by 0.4 per cent to €89.19 million. This sum excluded value added tax.
Controlled by members of the Wicklow-based McKenna family, the Power City business remains one of the most tightly-managed in the electrical goods market.
The operating profit margin rose to 9.62 per cent in the latest period from 9.2 per cent a year earlier, far exceeding comparable figures for its biggest rivals, DID Electrical and London-listed DSG Retail Ireland, owner of Dixons, Currys and PC World.
Members of the McKenna family received dividends of €425,891 in the most recent year, just below the €426,000 they received in the year to September 2004. These include businessman Liam McKenna and various members of his family.
The profits retained in Power City Ltd rose to €46.95 million at the end of the financial year, from €40.01 million in the previous period. At the outset of the current year, cash and bank balances stood at €35.65 million. Shareholders funds stood at €48.27 million.
Like other electrical retailers, Power City has been a big beneficiary of the rise in consumer spending and the housing boom, which stimulates demand for big-ticket household items such as fridges, cookers, dishwashers and laundry equipment.
The company has seven stores in the Dublin area, in Tallaght, Sallynoggin, Blanchardstown, Finglas, Coolock, Fonthill and Bray, Co Wicklow. It employed 206 people last year, the same as in the previous period.
In spite of its in-your-face television and radio adverts, the company maintains a very low corporate profile and lists only a single phone number on its website. Its registered office is in Bray. The company was not available for comment yesterday.
The accounts were signed off last January but filed in the Companies' Office only within the past week. The directors' report with the accounts said there were "no future material changes anticipated in the business of the company at this time".
