Pre-tax profits at Irish arm of Gap double to €1.3m
Boosted by the opening of new stores at Cork and Dundrum last year, Gap Stores (Ireland) Ltd recorded the 163% increase in pre-tax profits from €497,286 to €1.3m in the 12 months to the end of January 30 this year.
The increase in pre-tax profits follows revenues jumping by 63% from €5.1m to €8.4m during the period.
The US company opened its first store in Ireland at Dublin’s Arnotts in 2006 and according to the company’s directors, “the company generated solid profitability and a strong cash inflow from operating activities during the year”.
They add: “This trend has continued into 2010. Consequently, the directors believe the company is well-placed to manage business risks successfully despite the current uncertain economic outlook and will continue in operational existence for the foreseeable future.”
The directors add that “the level of business and the financial position at the financial year end was satisfactory and in line with directors’ expectations”.
They state that “the company plans to opportunistically increase its presence in Ireland and seek opportunities to maximise its profitability and market share in the Irish casual apparel market”.
The accounts show that the company had accumulated profits of €1.3m at the end of January last.
With the opening of the two new stores last year, the filings show that the company increased the number it employs from 47 to 72 last year, with staff costs almost doubling from €648,666 to €1.2m.
The filings show that the company’s operating profit last year increased by 147% from €532,634 to €1.3m.
The figures show that the company’s cost of sales last year increased by 73% from €1.6m to €2.9m, with the company’s administrative expenses increasing by 41% from €3.4m to €5.4m.
The accounts show that the company incurred rental charges from its property in the Republic of €1.3m to the end of January 2010.
The company’s parent, Gap Inc provided a revolving loan facility of up to €2.5m at 4.55% with no fixed maturity date.
The accounts state that on September 2006, Gap Stores (Ireland) Ltd drew down €1m to fund the store opening. The accounts state that this was repaid during 2009, but the revolving loan facility remains available for further expansion
Globally, Gap Inc employs 134,000 employees and operates more than 3,100 stores to support its various brands that include Banana Republic and Old Navy.
In the fiscal 2009 year, the company – headquartered in San Francisco – had global revenues of $14.2 billion.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
