Dunnes’ UK profits fall as revenues slump

Pre-tax profits at the UK arm of Irish-owned retail giant, Dunnes Stores last year decreased by 13% to £13.8m (€17.6m) after a slump in revenues.

Dunnes’ UK profits fall as revenues slump

According to returns just lodged by Dunnes Stores (Bangor) Ltd to Companies House in the UK, the firm sustained the drop in profits as revenues decreased by 11% from £157.55m to £140.52m in the 12 months to the end of February 1, 2014.

The figures show that the firm paid dividends of £470,000 last year to Irish-based parent, Dunnes Stores (Henry Street) and this followed a dividend payout of £3.53m in fiscal 2013.

The firm’s profits narrowed after the revenue decrease and gross profit margin last year declined from 38.28% to 37.84%.

The Newry-registered firm’s revenues are generated in the UK and Northern Ireland with Dunnes Stores operating 34 stores in the UK and Northern Ireland, broken down between 23 in Northern Ireland, six in England and five in Scotland.

The accounts offer the only insight into the finances of the family-owned business as Dunnes Stores has unlimited status in Ireland and is not required to file annual accounts to the Companies Office.

Numbers employed by the UK arm last year fell from 1,944 people to 1,724 and across the group, Dunnes Stores employs around 15,000 people in total in Ireland and the UK.

Dunnes is one of the largest employers in Ireland operating 116 stores here. It is the third largest player in the Irish grocery market with a market share of 22.7%, according to the latest figures from Kantar Worldpanel.

The directors of the UK firm are the driving forces behind the Dunnes Stores success story of the modern era, Frank Dunne and Margaret Heffernan.

The accounts for the UK firm show its operating profits decreased by 12% from £15.2m to £13.4m.

The firm’s profits were boosted last year by £481,000 in interest receivable and other finance income compared to £721,000 under the same headings in fiscal 2013.

The firm last year paid corporation tax of £3.6m compared to £4.3m in 2013.

The figures show the firm’s accumulated profits last year increased from £306.98m to £317m. The firm’s cash during the year increased more than threefold from £28.98m to £104.16m.

Numbers employed by the firm fell by 220 with staff costs reducing by 7% from £18.89m to £17.58m. Remuneration for directors is borne by another company.

The profit last year takes account of non-cash depreciation costs of £3.18m.

The firm’s net assets last year stood at £297m. The accounts show that a related firm, Dunnes Stores transacted purchases for re-sale on behalf of Dunnes Stores (Bangor) Ltd and recorded management charges to Dunnes Stores (Bangor) Ltd amounted to £61.6m.

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