Reorganisation costs of over €510,000 at the family-owned business the Kilkenny Group last year helped cut pre-tax profits by 25%.
New accounts filed by the Kilkenny Group’s Clydaville Investments Ltd show the luxury goods retailer posted pre-tax profits of €912,920 in the 12 months to the end of January.
That is down from the €1.2m profits in the previous 12 months. Revenues dipped by less than 2% to €29.9m. Operating profits rose 31.5% to €1.44m.
The group operates 15 stores, with its head office based in Killarney, Co Kerry.
No detail is provided on the background to the “re-organisation costs” of €512,185 but they coincided with a row between chief executive Marian O’Gorman and her son, the group’s former marketing director, Greg O’Gorman, which ended up in the High Court.
The row was triggered after Ms O’Gorman sacked him in 2016, but the High Court was told this summer the case was “resolved to the satisfaction of all parties”.
In a settlement, her four children were to get shares in the business.
In the 2017 accounts for Clydaville Investments Ltd, the directors said that “in light of the continuing competitive climate of retail, the directors are very satisfied” with the performance.
Staff numbers fell from 270 to 256 in the year, while staff costs increased from €7.27m to €7.65m.
Ms O’Gorman and finance director Conor Lynch are listed as directors. Directors’ pay last year increased from €342,021 to €376,255.