Book retailer hopeful of profit

KENNY’S BOOKSHOP said yesterday it is hopeful of making a profit this year — but only after imposing cost-cutting measures.

Kenny’s Bookshop was established in Galway in 1940 and the latest accounts for Kenny’s Bookshops and Arts Galleries (Holdings) Ltd show the company had accumulated losses of €4 million at the end of December 2009.

The company’s net loss from July 2008 to December 2009 was €1.1m

The company had a shareholder’s deficit of €3.3m and the largest contributory factor to the loss-making operation was a €6.9m writedown in its properties during the year — this followed a writedown of €3.6m in 2008.

Karen Golden is granddaughter of the late Des and Maureen Kenny, who established the business 71 years ago. She said yesterday that “the company is hopeful of making a profit this year”.

She said: “Like most companies our size, and in our sectors, we are doing everything possible to secure the future success of our business.

“We are adapting our marketing strategies to changing market conditions and embracing new pricing and distribution channel technologies. Cost-cutting and efficiency measures have been, and continue to be, implemented.”

The numbers employed by the business have dropped from 20 to 10, with five of the 10 part of the Kenny family. Ms Golden said: “We are working very hard to protect the jobs here.”

The abridged accounts for 2009 do not provide a revenue figure and Ms Golden declined to state whether they made a profit or loss in 2010.

The company has bank loans totalling €6.9m.

A note attached to the accounts states: that “projections for future periods indicate an improved position”.

They state that they anticipate that the pursuit of new business opportunities “will increase revenue and reduce losses”.