Lifestyle Sports boss says group doing everything possible to stabilise finances

The chairman of the group that operates the Lifestyle Sports retail chain said that all three group businesses are taking the necessary action to return the group to profitability.

Victor J Stafford of Stafford Holdings made the comment as new accounts show that pre-tax losses at Stafford Holdings Ltd and subsidiaries increased by 70% last year to €1.9m.

Accounts just filed with the Companies Registration Office show that losses increased at the group in spite of revenues increasing by almost €10m from €327.5m to €337.3m in the 12 months to the end of Sept 30.

The numbers employed by the fourth-generation privately owned group last year fell from 892 to 823.

The Co Wexford-based group purchased Lifestyle Sports for €60m in 2005.

In a statement Mr Stafford said that last year “was another challenging year for the group across its three core businesses, Lifestyle Sports, Campus Oil and Stafford Fuels, but I am pleased to report that some excellent progress has been made in terms of returning Lifestyle Sports to being earnings before interest, tax, depreciation and amortisation (EBITDA) positive and through the continued relentless cost reduction being achieved both in Lifestyle Sports and Campus Oil”.

On the performance of the 62-store strong Lifestyle Sports last year, Mr Stafford said: “Notwithstanding a modest decline in turnover, Lifestyle Sports in Ireland generated a substantial increase in EBITDA to return to positive EBITDA as a result of an improvement in gross margins and extensive cost reductions, including a significant number of store closures.”

Mr Stafford reported that Campus Oil “performed satisfactorily, where again reductions in both volumes and gross margins were offset to a material extent by substantial cost savings”.

The returns also confirm that the group has re-financed all of its banking facilities with Bank of Ireland.