Road works hit Clery's profits

TWO of the country's largest retailers have reported mixed results for the past year.

Profits at Clery's, the Dublin department store, were just €118,538 in 2003, while toy shop chain Smyths saw profits jump by 20% to €12.89m.

Clery's said extensive road works being carried in the city hit trading at its flagship O'Connell Street outlet.

Profits for the year to the end of January 2004 were €118,538. This was a rise on the €67,921 it made the previous year.

Turnover increased from €28.55 million to €29.3 million over the year, according to accounts just filed at the Companies Registration Office.

In addition to the Clery's outlet in O'Connell Street, the company also owns the bargain retailer Guineys.

"The group experienced a difficult year as business continued to be disrupted by infrastructural developments affecting O'Connell Street.

"A major phase of the disruption is scheduled to end in 2004 and the board is confident that O'Connell Street will become a vibrant and thriving retail destination when works are finally completed in 2005," the directors said in the accounts. Most of O'Connell Street has been revamped over the past couple of years, but the construction of the LUAS light railway has delayed the completion of road works.

The company's wages and salary bill was flat at €6.44 million.

The company had 267 people employed across its stores at the end of January, giving an average annual salary of just over €24,100.

Even though profits for the year were just under €120,000, the company remains in a financially healthy position.

Its cash reserves shot up from €193,385 to €1.38 million. Long-term debt was up a touch €10.6 million. The company's eight directors were paid €295,666 in pay and fees for the year, and the account show that Clery's is also paying a former managing director an annual pension of €39,273 a year.

The company' shareholders will get a €500,000 dividend - the same amount they received in 2003.

The directors of the company are listed as Mary Ryan, the 103-year old chairman; Mervin Phelan; Michael Culhane; Frank McAulife; Denis Ryan; Denis Collins; managing director Patrick Timmins and John Rowe.

The accounts show that Mr Culhane and Mervin Phelan are the two largest shareholders. Meanwhile, Smyths Toy shops have seen profits rise by 20% in the year to the end of July 2003, its most recent accounts show.

The company, owned by the Smyth family from Galway, saw sales rise across its 13 outlets by 21% to €18 million. Retained profits rose to €40m.

Turnover from its 10 stores in the Republic rose 8% to €102.5m, while sales in its three Northern Ireland shops increased by 185% to €21.4 million.

Smyth now employs 428 people across the 15 stores, including four superstores in Dublin.

The four members of the Smyth family were paid a total of €1.07 million in fees and salaries.