Brown Thomas gets earnings boost as pre-tax profits grow by 4% to €19.5m

PROFITS at Brown Thomas, the country’s largest department store group, grew by 4% in the year to the beginning of February.

Accounts just filed for the company, which runs department stores in Dublin, Cork, Limerick and Galway, show pre-tax profits came in at €19.5 million, up on the €18.8m the previous year.

Profits were boosted from the €1.6m gain on the sale of a property near its flagship Dublin branch and from the sale of excess stock that was damaged when the outlet was flooded early in 2003.

Turnover for the year fell by €5m to €188m, reflecting what was a difficult year for Irish retail sales in general.

However, BT’s two Dublin outlets, both on Grafton Street, can expect a good performance in 2004. According to estate agents CB Richard Ellis, footfall on the capital’s main shopping district has jumped by 20% since the LUAS tram line opened earlier this year.

The accounts reveal Brown Thomas reduced its workforce by 80 people to 754 with cuts coming from its administration and sales staff. This reduced the wages and salary bill from €27.1m to €26.9m, giving an average annual salary of just under €36,000.

Directors’ pay for the year fell to €468,403 from €556,602, a 15% drop. Eight directors, including chief executive Paul Kelly, are listed in the accounts.

The accounts show that Mr Kelly, who is also heading up Selfridges, has been given an interest-free €635,000 loan by the company.

Despite the modest profits rise, the company paid its owner a €5m dividend, an increase on the €3m payment in 2003. Shareholders’ funds increased from €89m to €100m, while long-term debt was flat at €41m.

Brown Thomas also owns the A-Wear high street fashion chain, which has been expanding in recent years. Last month, it announced a €1m investment in Cork with a new store at the Mahon Point shopping centre.

The company is owned by Canadian billionaire Galen Weston.

Mr Weston bought upmarket London department store Selfridges last year for almost €1bn. The accounts shows a 22% stake in Selfridges was given to the Irish firm.