British buy boosts Eason's profits

PROFITS at Eason and Son, the newsagents and bookseller, increased to €13.7 million, thanks to the acquisition of a 50-strong chain of bookshops in Britain, its latest accounts show.

Eason, one of the country's oldest companies, acquired British Bookshops & Stationers plc towards the end of 2003, its first takeover outside of Ireland.

Turnover for the year to January 25, 2004 was €380.5m, up on the previous year's tally of €372.3m. However, excluding €9m in revenue from acquisitions, turnover from its continuing operations was down slightly at €371m.

The acquisition added €2.2m in profit, boosting the overall figure, which would have fallen back otherwise.

Eason's bought 49% of the British Bookshops & Stationers for around €17m and will pay another €23m next year for the remaining shares in the company.

The takeover will double the number of shops owned by Eason, though it will add only 40% to its retail selling space as the British shops are much smaller than the typical Eason outlet.

The Eason accounts show that the British and Northern Ireland side of the businesses are becoming a major part of the company. Turnover in Britain and the North was €87m last year, with the rest coming from its core Irish operations. The full year turnover contribution from its acquisitions is expected to be around €55m.

The company did not strip out its revenue by division. In addition to its retail activities, the company also owns the Eason Advertising agency, an electronic top-up payments arm and a newspaper distribution business.

Eason's has closed one of its larger outlets at Dublin's ILAC Centre but plans to expand next year with new outlets in Dundrum and at the Mahon Point shopping centre in Cork.

The accounts reveal Eason to be one of the mostly profitable private firms in the state. It had accumulated profits of €80m at the end of its financial year and shareholders funds of €185m.

The company will pay its shareholders a 10 cents per share dividend, which equates to a total payout of €2 million.

The wages and salary bill for the period dipped a touch to €31.8m, giving an average annual salary of €25,597 for is 1,244 employees. Staff numbers will double when British Bookshops & Stationers is included. Directors' salaries and fees for the year increased from €1.16m to €1.24m.

Eason's was founded in the early nineteenth century but is now owned by hundreds of shareholders who have connections with the company. These include former director Harry Clarke, who owns 32% of the shares, and current chairman Michael Ryder, who holds 17.6%.