Expansion costs at discount retailer the Euro General group last year contributed to its main firm recording pretax losses of €129,436.

The Euro General business opened up an additional 14 outlets last year and this resulted in revenues increasing by 12 per cent from €50.19 million to €56 million.

However, the associated costs of opening up the new stores resulted in the firm recording a pretax loss of €129,436 that followed the firm recording a pretax profit of €1 million in 2012.

The business operates 77 Eurogiant stores and according to the directors’ report, they consider “the results for the year and the position of the group at balance sheet date to be satisfactory”.

Gross profits
The figures show the firm's recorded a loss last year, despite increasing its gross margin from 41 per cent to 42 per cent, with gross profits increasing from €20.59 million to €23.59 million.

Administrative expenses increasing from €10.84 million to €13.28 million and distribution costs increasing from €8.63 million to €10.37 million were the main factors behind the firm’s loss. The firm’s cost of sales last year increased from €29.6 million to €32.47 million.

Chief executive Charlie O’Loughlin opened his first discount store on Dublin’s Moore Street in 1990 and the figures show that the firm had accumulated profits of €16.5 million at the end of May 10th last.

The firm’s cash pile reduced from €4.3 million to €2.99 million. The company’s shareholder funds totalled €17.24 million.

The main activity of the business is the sale of novelty goods, household goods and confectionery.