Profits at family-owned retailer Avoca fell 28 per cent last year, with directors attributing the result to expansion costs.

Avoca Handweavers Ltd and subsidiaries reported pre-tax profit of €1.197 million after a 2.2 per cent rise in turnover to €49.7 million in the 12 months to January 31st last year.

Avoca designs and manufactures its own clothing, food and home furnishings from its Wicklow base and it has 10 retail stores and cafes across Ireland.

Managing director Simon Pratt said yesterday: “We were disappointed with the performance to January 2012 but it was a year when we put into place some new structures to allow for future growth. In the past two years we have opened a stand-alone central bakery, launched a new food-only model at Monkstown and opened a 20,000sq ft store in Malahide creating 170 new jobs in the process.”

Mr Pratt said the current financial year is proving more positive in terms of both sales and profit. Avoca now employs 750 people and Mr Pratt said: “I believe sustainable job creation is now one of the biggest obligations that falls on entrepreneurs in this country in the current climate.”