Top brand boosts profit

THE popularity of the Top Shop brand in Ireland helped the store’s owners increase its profit here by 30% last year.

The Irish arm of the Arcadia group, which also operates Burton, Dorothy Perkins, Evans and Top Man here, increased its profit before tax from £11.6 million (€12.4m) to £15.1m (€16.1m) in the year to the end of August 2008. Turnover grew 5% to £72m (€77m) while retained profit was £13.3m, up from £10.2m in 2007.

“Whilst the retailing environment in Ireland remains highly competitive, the company has benefited from the continuing popularity of the Top Shop brand and the strength of the euro relative to sterling,” the directors’ report reads.

The board said it remains optimistic that the ongoing investment in stores and product will contribute to the company’s objective of growing both total and underlying sales.

“Further improvements to the supply chain, including tight stock and commitment management, will be key to ensuring that gross margins are optimised going forward,” the accounts read.

The directors did not recommend the payment of a dividend in the year and the retained profit was transferred to reserves.

“The key business risks currently facing the company are the increasingly competitive marketplace and the sourcing of new ranges to satisfy its fashion and value-conscious customers,” say the accounts.

Despite employee numbers falling from 982 to 945, staff costs jumped to £12m from £10.9m in the previous year.

In the year, the company paid almost £1.1m (€1.17m) to withdraw as a participating employer from the Arcadia Group’s British pension scheme.