Waterstones’ profits fall 37% to €1.5m

BRITISH bookstore group Waterstones’ pre-tax profits fell 37% to €1.5 million in Ireland last year.

Despite the fall in profit, the directors said that the company traded successfully in the year to April 25, 2009. The company, which is owned by music store owner HMV, saw total sales fall by 13.3%, to €24.7m, in the year. Operating profit fell to €0.7m from €2m, largely reflecting the sales decline.

The directors recommend that no final dividend be declared and that the profit be transferred to reserves, according to accounts just filed.

Subsequent to the period under review, the directors paid an interim dividend of €10m.

“The principal risks identified by the board relevant to the company are the competitive nature of its market, general sensitivity to changes in economic conditions, the impact on the company of the growth of digital delivery of content, seasonality with the Christmas season being the most important trading period, monitoring agreements with key suppliers, damage to reputation, maintaining and developing information technology systems and attracting motivating and retaining key staff,” the accounts read.

Directors’ emoluments were €144,000, compared with €130,000 in 2008.

The accounts said based on the overseas business in the year to April 2008, a 10% change in the value of sterling and the US dollar against the euro would affect the company’s profit before tax by €1,052,000.