Topshop and Topman buck Arcadia’s poor results

TOPSHOP and Topman were the only stores in the Arcadia portfolio of stores to generate an operating profit in Ireland last year.

Other stores in the group include Dorothy Perkins, Evans and Burton.

According to accounts just filed for Arcadia Group Multiples (Ireland) Limited for the year ended 28 August 2010 pre-tax profit was down significantly from £10.6m (€12.3m) to £1.7m (€1.95m) while turnover was down from £68.6m to £59.8m

During the year turnover declined by 14% and gross profits were markedly lower, as all brands found trading conditions in Ireland extremely difficult, according to the accounts.

The company said that in order to counteract the decline in sales it has sought to reduce costs wherever possible.

“Despite prevailing market conditions, the board remains optimistic that the continuing investment in store and freshness of product will enable the company to meet its objective of growing both total and underlying sales.

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

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

“The company is exposed to a variety of financial risks including foreign exchange risk on purchases made in US dollars which it mitigates by entering into forward foreign exchange contracts,” the accounts read.

Staff costs in the year were up slightly from £14m to £14.2m despite staff numbers falling from 936 to 901. The aggregate emoluments paid by the company to its directors was £10,000 compared with £22,000 in 2009.

The directors did not recommend the payment of a dividend and the retained profit for the year has been transferred to reserves.