Furniture retail group records €1.7m losses

AUDITORS for the main company of the Instore group have provided a disclaimer as to whether the company’s financial statements give a true and fair view of the state of the company’s affairs.

Instore Distribution Ltd is the main arm of the Instore Group, which was established in Limerick in 1988 and now employs 100 people in six stores across Ireland in Limerick, Midleton, Waterford, Galway and Dublin.

Accounts for Instore Distribution recently filed with the Companies Office show that the furniture retail company recorded losses of €1.7 million in the 12 months to the end of February, 2009.

This followed the company recording a pre-tax profit of €288,073 the previous year.

The losses mainly arise from an exceptional cost of €1.34m in relation to the provision for losses in group and connected companies.

The directors state the company can only meet its obligations as they fall due on condition that it has the continuing support of its bankers and other group companies.

At the end of the period, the company had net liabilities totalling €1.2m.

In their report, dated December 8 last, auditors, Morrissey McGrann & Company state that because of the potential significance to the financial statements of the combined matters disclosed by the company, they were unable to form an opinion as to whether the financial statements give a true and fair view of the state of the company’s affairs.

The company’s directors are listed as John Moloney and Oliver Moloney. The company declined to comment on the results.