Avoca’s pre-tax profits rise 73% to €2.07m

Avoca’s retail blend of fashion and food continued to weave strong profits last year for the family firm as pre-tax profits rose 73% to €2.07m.

New figures show the business reaped the benefits from its continued expansion as Avoca Handweavers Ltd and subsidiaries enjoyed the increase in profits after revenues rose 12% from €49.72m to €55.6m in the 12 months to the end of Jan 2013. Revenues and profits were boosted by Avoca’s opening of a cafe and store at Malahide Castle in Oct 2012.

Pre-tax profits rose from €1.197m to €2.07m. Numbers employed rose from 589 to 665 with staff costs rising from €16.48m to €18.4m.

Avoca designs and manufactures clothing, food, and furnishings from its Wicklow base and has 11 retail stores and cafes in Ireland.

According to the directors’ report, “the group plans to continue to develop further unique food market and cafe operations and to develop new and distinctive ranges of fashion garments and accessories”.

The increase in Avoca’s operating profit was even higher at 77% going from €1.6m to €2.86m as the group’s prior pre-tax profits took account of a €371,359 profit made on the sale of land. Interest arising from the group’s expansion totalling €789,862 helped reduce profits.

Last year the group enjoyed ‘other operating income’ of €121,780. The profit takes account of non- cash depreciation costs of €805,221. No dividend was paid last year.