WH Smith losses up by 30.8% to €165k

Pre-tax losses at the Irish arm of British-owned retail giant, WH Smith increased by 30.8% last year to €165,472 in spite of a sharp increase in revenues.

The figures show revenues at WH Smith Ireland Ltd increased more than three-fold from €1.79m to €6.86m in the 12 months to the end of August last.

However, the chief factor behind the increase in pre-tax losses was the firm’s non-cash depreciation cost increasing from €81,569 to €219,852, while the firm also recorded an impairment charge of €199,201.

The increase in revenues is attributable to the firm opening up four new units at Dublin Airport.

The opening of the new stores resulted in numbers employedat the company increasing from 10 to 37 last year, with staff costs increasing almost three-fold from €299,259 to €874,301.

The figures show the company’s cost of sales increased from €940,828 to €3.47m, resulting in the firm’s gross profit increasing from €855,588 to €3.39m.

The figures show the company’s distribution costs went up from €960,846 to €3.5m with administrative expenses increasing from €21,169 to €41,451.

The company’s accumulated losses increased from €386,462 to €548,825.

The firm’s cash increased from €460,549 to €2.69m.

The rents from operating leases increased from €475,249 to €1.728m.

In relation to the firm’s losses, the filings address the company’s going concern status, stating that the company is in receipt of a letter of support from the ultimate parent company to provide financial support for a period of no less than 12 months.

A note attached to the accounts states that “as a result of the company’s start-up situation, taxable losses have been incurred which are available for offset against future taxable profits”.

In 2009, W H Smith opened its first two stores at Shannon Airport before opening its outlets in Dublin Airport.

In a post balance sheet move, the company opened its first high street store in the republic in Arnotts, Dublin.