Guiney’s pre-tax profits down 79%

Pre-tax profits at discount department store retailer Michael Guiney decreased sharply by 79% to €354,210 in 2010, new figures show.

Accounts recently filed by Michael Guiney Ltd to the Companies’ Office show the group sustained a 17% drop in revenues from €23.5m to €19.4m in the 12 months to the end of January 2011.

The retailer has shops in Dublin, Cork, Limerick, Waterford, Castlebar and Tralee.

The directors’ report states that “the group had a challenging year due to current economic conditions”.

The directors state that the significant risks and uncertainties that relate to the business “are the increased competition from the UK retailers who have stronger buying powers and the threat to the historically grocery based retailers expanding into the non-grocery sector.”

In spite of the downturn in profits and revenues, the Dublin-based group’s balance sheet remained strong, with accumulated profits of €11.5m contributing to shareholder funds of €12m. The shareholder funds included €7m in cash.

During 2010, the numbers employed by the group declined from 173 to 155, with staff costs decreasing from €4.6m to €3.9m.

The company’s directors, Michael and Delia Guiney took no salary from the group in 2010. Their combined salary in 2009 amounted to €345,274.

The profit takes account of non-cash depreciation costs of €483,738.

The company’s operating profit dropped by 85% from €1.68m to €249,439.

The retailer’s cost of sales last year decreased from €13.7m to €12.2m with administrative expenses also falling from €8m to €7m.