Profits rise at cash-and-carry group

PROFITS at Cork-based cash-and-carry group James A Barry & Company climbed last year despite its retail arm suffering a loss.

The company did not strip out the losses of the retail arm - it has 200 stores trading under the Costcutter brand - according to its latest accounts.

Pre-tax profits for the year ended 31 January 2005 were €1.6 million, up from €1.52m the previous year.

Sales were also slightly ahead at €183.8m.

“The directors expect to increase market share and brand awareness in the coming year,” the company said. “In relation to the retail operation, the company again made a loss and it is the intention of the directors to eliminate any further losses.”

To combat losses at the Costcutter arm, the company sold one of its shops - at a loss of nearly €350,000. This figure will be booked in next year’s accounts.

The accounts also show that a subsidiary of James A Barry, Quickford Limited, cannot repay the parent group a loan of €188,217.

Dividend was paid to the company’s shareholders, the Barry family of Mallow. Retained profits increased to €6.2m and shareholders’ funds were €13.5m.

Pay and pension contributions for the company’s directors fell to €279,415 from €311,513. The directors are listed as: James A Barry, Jim Barry, Pauline Barry and Denis Kennedy.

A note to the accounts says Blackwater International, owned by the directors, charged a management fee of €187,838 during the year. The company was also owed €539,872 by Blackwater International.

The company is also in dispute with the Revenue Commissioners over the tax treatment of certain items.

“It is the opinion of the directors, based on advice received, that this appeal shall be successful. In the event of the case being unsuccessful, the maximum tax liability of the company, excluding potential interest, is not expected to exceed €830,865. This case is subject to the Revenue Commissioners appeals procedure and as a result the timing of any outcome is indeterminable.”