€1.35m losses for book retailer
New figures for fiscal 2013 and 2012 show Sivota Ltd incurred losses totalling €696,821 in the 12 months to the end of Mar 2, 2013, and this followed losses of €659,577 the previous year.
The continuing losses at the firm came ahead of Hughes & Hughes closing two of its stores at Dundrum and Swords in April of last year, with the firm entering a franchise agreement with Eason to operate its three remaining stores at Swords, Santry, and Ennis.
Sivota was sitting on accumulated losses of €1.699m at the end of March last. Restructuring of the business last year came against the background of a 14% decline in the value of books sold in Ireland in 2013 with Nielsen Book Scan recording a 16% fall in the number of books sold.
Hughes & Hughes Ltd collapsed in Feb 2010 with debts of almost €15m, but within months, founder Derek Hughes was able to resurrect a downsized business with the investment of the two men behind the Bus Stop chain of newsagents, Aidan Masterson and Pierce Moloney through Sivota Ltd.
In a note attached to the Sivota 2013 accounts, the directors state that they are of the opinion that together with the store closures and the consolidation of the remaining stores into a franchise brand, the firm is in a position to return to profitability.
The note states that the shareholders have provided confirmation that the required financial support will be forthcoming, which will enable the company to meet its debts. The amount owed to Masteron and Moloney’s M&M Group (Ireland) last year increased from €1.46m to €1.63m.
The note attached to the accounts states that the company recorded a net loss of €696,821 during the year and at that date, its liabilities exceeded its total assets by €1.699m. The firm’s cash last year increased from €40,326 to €44,402.
The loss involves a charge of €41,668 that arises from an onerous lease the company is required to service.
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