Avoca profits increase by 316%

PRE-TAX profits at family- owned retailer Avoca last year increased more than fourfold to €1.6 million in spite of a dip in revenues.

Accounts just filed by Avoca Handweavers Ltd and subsidiaries to the Companies Office show that group revenues dropped by 5% from €48.5m to €45.9m to the end of January last year.

However, the Co Wicklow-based food and clothing retailer increased its pre-tax profits by 316% from €406,746 to €1.6m.

In their report, the directors state that “the group plans in the future to add further retail facilities to expand its overall business in a controlled manner”.

Avoca designs and manufactures its own clothing, food and home furnishings from its Wicklow base and it has nine retail stores and cafes on the island of Ireland.

The figures show that the company’s operating profits increased by 54% from €1.64m to €2.55m last year.

The accounts show that the increase in the company’s pre-tax profits was helped by lower interest payments last year of €860,936 compared to €1.2m in 2009.

The profits last year resulted in accumulated profits of €13.3m. Total shareholder funds stood at €21.6m.

The figures show that the group’s cost of sales last year reduced by 8% from €23.2m to €21.2m, with administrative expenses decreasing by 5% from €23.7m to €22.3m.

The accounts include a depreciation charge of €705,074, while the group also wrote off €20,942 in investments.

The figures show that the numbers employed by the group last year reduced from 590 to 568, with the company incurring redundancy costs of €57,996.

The company’s staff costs, including redundancy costs, last year came to €15.6m — a drop of 8% on the €17m in staff costs in 2009.

The figures show that the company’s directors, Donald, Hilary, Amanda, Simon, Ivan and Vanessa Pratt, shared an aggregate €1.1m in remuneration, including pension contributions.

The group’s land and buildings were valued at €31.9m at the end of January 2010.

The group had bank loans totalling €19m.

According to the directors’ report, the company “plans to continue to design and develop new and distinctive ranges of fashion garments and accessories”.

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