Redundancy costs hit Debenhams
According to accounts just filed by Debenhams Retail (Ireland) Ltd, revenues at the firm dipped by 2% from €169.8m to €166.4m in the 53 weeks to the end of Sept 3, 2011.
Debenhams operates 11 department stores across Ireland, the majority of which it acquired from Roche Stores in 2006.
The average numbers employed by the firm last year totalled 1,764 and losses at the firm narrowed from €12.1m in 2010 to €6.1m.
The chief factor behind the lower losses was redundancy costs decreasing sharply from €10.6m in the fiscal year 2010 to €1.1m last year. When the restructuring costs of €1.1m are stripped out, the firm recorded a gross profit of €471,000 last year compared to a gross profit of €6.5m in the previous 12 months.
A spokeswoman for Debenhams said yesterday: “We are pleased with our overall performance in a challenging market.”
According to the directors’ report “the external environment for Debenhams Retail (Ireland) Ltd is expected to remain challenging in 2012.”
Along with fashion goods, the firm also retails home and furniture items, electrical goods along with gifts and toys. The firm operates stores in Dublin and in Cork along with ones in Limerick, Galway, Tralee, and Waterford.
The filings show the firm’s operating loss declined by 47.5% from €12m to €6.3m. The figures show the firm incurred non-cash depreciation and amortisation costs totalling €8.7m showing the company made a cash profit of €10m last year after also taking into account a tax credit of €1.3m.
The figures show numbers employed at the firm last year declined from 1,803 to 1,764 with staff costs last year declining by 23% from €50.8m to €38.7m.
The figures show the firm’s cost of sales last year declined from €173.8m to €167m.
The loss last year reduced the firm’s accumulated profits to €8.6m. The firm has shareholder funds totalling €64.1m that takes account of a capital contribution of €55.4m.
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