Lifestyle owners report €3m rise in earnings

EARNINGS at the group that controls Lifestyle Sports have risen by €3 million for the first half of the current financial year.

That is according to chairman of Stafford Holdings Ltd and subsidiaries, Victor J Stafford who stated that the business this year has benefited from a recent improvement in like-for-like sales in Lifestyle Sports and the closure of its loss-making Czech sports retail business in March 2010.

Mr Stafford said that the business for this year is satisfactory. He made his remarks in a statement accompanying results filed with the Companies Office that show that the company recorded a €5.4m pre-tax loss in the 12 months to the end of September 2010.

The accounts show that revenues declined from €339m to €331.4m in the 12 months to the end of September 2010. The €5.4m pre-tax loss last year was 83% down on the group’s €32.8m pre-tax loss in 2009 that was largely attributable to a €20.5m write-down in goodwill and rationalisation costs of €5.85m.

Last year, the company incurred a €760,000 cost under rationalisation. Before exceptional items are taken into account, the returns show that the group’s operating losses decreased by 17% from €4.7m to €3.9m last year.

The directors point out that the group’s earnings before interest, depreciation, amortisation and tax (ebitda) last year totalled €5.4m compared to €6.6m in 2009.

Along with operating the Lifestyle sports chain, the group is also engaged in the importation of oil and solid fuel along with providing ships’ agency and warehousing services. The numbers employed by the group declined last year from 1,096 to 888 and this is connected to the company exiting its retail operations in the Czech Republic.

The figures show that the company’s accumulated profits stood at €46.9m last year.

In his statement, Mr Stafford said: “Our results for the first half of the current financial year are satisfactory, in line with our expectations and indicate an increase in group ebitda of €3m compared to the same period in the prior year.”

He said that 2010 “was another very challenging year for the group and, notwithstanding the reduction in operating losses incurred, the group continued to encounter extremely tough trading conditions as a result of the adverse economic situation and a further reduction in discretionary consumer spending”.