Power City pre-tax profits fall 16.7% to €4.9m
New figures show the Dublin-based firm recorded the drop in profits as revenues increased by 8% from €69.5m to €75.3m in the 12 months to the end of Sept 29 last year.
The profits of €4.9m follow profits of €5.8m in 2011.
The figures show that at the end of Sept 29 last, the company had accumulated profits of €81.1m.
Numbers employed at the McKenna-owned firm last year increased by 25 to 224.
According to the directors’ report “the directors are satisfied with the results for the year”.
The filings show the company paid a dividend of €920,000 to its shareholders in 2012, following a dividend payout of €1.8m in 2011.
The accounts show that the cash-rich firm had cash of €45.9m at the end of September last.
Power City’s stores are located in the eastern part of the country, with its Dublin stores at Tallaght, Sallynoggin, Finglas, Coolock, Fonthill, while there are also stores in Bray, Naas and Drogheda.
The figures show that the company’s profit takes account of €905,000 in non-cash cost of depreciation.
The firm also incurred €4.3m in capital expenditure acquiring assets during the year, and this followed €1.1m in capital expenditure in 2011.
The directors’ report states that “the principal risk currently facing the company is the economic environment in Ireland which continues to be very difficult for retailing.
“The company financial results are dependent on maintaining its current market in a very competitive marketplace”.
The figures show the company’s cost of sales rose from €54.4m to €60.48m with administrative expenses increasing from €10.5m to €10.9m.
The figures show the firm’s operating profit fell from €4.49m to €3.95m.
However, lower net interest payments received of €952,000 compared to €1.396m in 2011 also contributed to the lower profits.
The figures show that remuneration for the seven directors last year totalled €732,000 compared to €820,000 in 2011.
