Harvey Norman ‘still upbeat’ despite losses

The directors of retailer Harvey Norman remain upbeat over the group’s future here in spite of incurring underlying operating losses of €17.5m last year.

The losses represent a decline of 27% on the underlying loss of €24m for 2012.

The group sustained the loss in the 12 months to the end of June 30th last year as revenues dipped by 2.2% from €147.4m to €144.2m.

In spite of the continuing losses, the directors’ report states that “the Harvey Norman brand continues to go from strength to strength in Ireland”.

The directors state that they “are satisfied with the reduction in the underlying operating loss. This result reflects the ongoing trend within the Irish business of material loss reduction, this being the third year of loss reduction within the Irish business. The directors are confident that the trend will continue”.

Last year, the group closed two under performing stories in the Republic at Mullingar and Dundalk while the group also shut down its computer and electrical department in its Northern Ireland stores.

The directors state that the business recorded like for like sales increase last year of 5.4% in the Republic and 9.8% in Northern Ireland.

Numbers employed at the group last year reduced from 828 to 754 with 580 engaged in sales and 174 in administration.

The firm’s accumulated losses at the end of June last totalled €99.53m.