Waterstone’s profits fall by €320,000
The company, part of the book and music retailer HMV Group, recorded pre-tax profits of €1.1 million in the 53 weeks to April 30, 2005, down 20% on the previous year.
Accounts just filed for the company, which has half a dozen outlets in Ireland, show sales for the year grew from €25.5m to €27.4m.
However, even though operating and administrative expenses were flat year-on-year, profits fell because of a higher cost of sales.
As no dividend was paid to its parent company, retained profits grew to €3.2m and shareholders’ funds increased €26.7m.
According to the accounts, the number of people employed at the year end fell by eight to 113, though staff costs increased by €175,000.
Directors’ fees and emoluments rose by €36,000 to €234,000.
A note to the accounts says one of the company’s three directors in Ireland did not receive any payments.
Profits at the company’s music stores rose by 22% to €9.3m on sales of €69.5m.
Sales for the 53 weeks to April 1 were 13% higher.
Waterstone’s is in the process of trying to buy British rival Ottakar’s.
Meanwhile, HMV is the subject of a takeover bid by private equity firm Permira.
There is also speculation that Waterstone’s founder Tim Waterstone is looking to buy back the book chain that carries his name.
