Waterstones’ Irish arm records €13m pre-tax loss

The Irish arm of bookseller Waterstones plunged further into the red last year after the company recorded impairment charges and store closure costs totalling €13.1 million.

Last year, two of Waterstones’ three Dublin stores were shut down with the loss of 46 jobs following a decision by its former parent, the HMV Group.

The British-based Waterstones group was acquired by a vehicle of Russian billionaire businessman Alexander Mamut, A&NN Capital Fund Management Ltd, from HMV for £53m (€63.2m) on a debt and cash-free basis last June.

Accounts just filed for the 53 weeks to April 30 last year show that Waterstones Booksellers Ireland recorded a pre-tax loss of €13m after recording a pre-tax loss of €7.9m in fiscal 2010.

The company recorded the loss last year after exceptional costs of €13.1m were incurred as a result of non- cash impairment of intangible assets, together with store closure and pension scheme settlement costs.

The figures show that the bookseller’s revenues last year declined by 8.8% from €21.7m to €19.8m.

The figures show €3m of the exceptional costs relates to store closures at Dublin’s Dawson Street and Jervis Street Centre and €9.5m from the impairment of goodwill. The company also incurred a €638,000 cost from the settlement of pension annuities.

As a result of the closures, Hodges & Figgis is the book chain’s only remaining Dublin outlet.

The company’s cost of sales last year totalled €19.3m.