Higher costs contribute to see Argos profits fall
According to accounts filed by Argos Distributors (Ireland) Ltd to the Companies Office, revenues at the firm increased marginally, from €213.8m to €214.6m, in the 53 weeks to the end of Mar 3 last year.
The pre-tax profits decreased from €20.4m to €14.1m, with higher operating costs and finance income decreasing by 42%, falling from €7m to €4m, being the main factors behind the drop in profits.
The directors state: “The company will continue to tightly manage costs. However, further operational and customerimprovements will continue to be implemented and operational standards developed, with an emphasis to ensure that the company remains well positioned to capitalise on the longer term recovery in the market condition in Ireland.”
The figures show that the UK-owned catalogue retailer’s operating profits last year reduced by 24%, from €13.5m to €10.2m, as a result of operating costs increasing marginally.
The filings show that the firm’s net financing income of €4m contributed to the €14m in profits.
The accounts show that Argos had accumulated profits of €161.8m, with shareholder funds totalling €389.4m. The firm’s cash stood at €22.6m.
The figures show that the numbers employed by Argos increased by 105 during the year, rising from 1,343 to 1,448, with the company’s staff costs declining marginally, from €21.4m to €21.3m.
The firm’s cost of sales increased by 1%, from €139.8m to €141.4m, resulting in a gross profit of €73.1m
The firm’s net operating expenses last year increased from €60.5 to €62.9m, made up of selling costs increasing from €49m to €50.4m and administrative expenses increasing from €11.5m to €12.5m.
The figures show that Argos’s spend on operating leases increased marginally, from €12.41m to €12.44m.
The accounts show that the firm’s profits takes account of non-cash depreciation of €2.9m last year.
The directors did not recommend the payment of a dividend last year.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
