Eason & Son profits hit €3m

BOOKSELLER and newspaper distributor Eason & Son made a pre-tax profit of more than €3 million in the year to January 27, 2008.

This follows losses recorded in its previous financial year when the company took a hit after making a €27m write-down in the value of two investments.

The company, which has been in business since 1819 and has 45 shops in Ireland, recorded a turnover in its last financial year of €497.4m with its joint venture included. This is an increase of 9% from the previous year.

Eason & Son has a joint venture agreement with Menzies Distribution Ltd to distribute magazines and newspapers in Ireland.

It said the Republic of Ireland joint venture commenced trading after the year end.

The directors propose a dividend for the year ended January 27 of 13 cent per share amounting to €2.6m. This is unchanged from the previous year.

Turnover in its Irish operation was up from €281m to €316m.

In Britain and South Africa however, turnover fell from €173m to €162m.

“Gross profitability reduced to a greater extent than the reduction of group operating costs due to reduced margins in distribution,” said the company in its directors’ report.

It also said the group is exposed to few financial risks and given its size the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. It said the policies set by the directors are implemented by the group’s finance department.

“It is the group’s policy to maintain sources of finance externally and internally to ensure sufficient funds are available for operations and major capital expenditure,” it said.