Michael Guiney profits plummet 80% to €12k

Operating profits at discount department store Michael Guiney decreased sharply last year.

According to accounts filed to the Companies Office by Michael Guiney Ltd, the company recorded the sharp drop in operating profits — from €62,531 to €11,983 — after revenues fell €250,0000 from €18.1m to €17.9m in the 12 months to the end of January 2014.

The retailer has shops in Dublin, Cork, Limerick, Waterford, Castlebar, Clonmel and Tralee and employs 136 people. The directors’ report states that “the group had a challenging year due to current economic conditions”.

Established in 1971, the company’s revenues fell 1.4% with administration expenses rising by €433,598.

Net interest payments of €13,791 resulted in the firm recording a modest pre-tax loss of €1,808 and this followed a pre-tax profit of €88,032 in 2013. After a corporation tax change of €36,949, the firm recorded a post-tax loss of €38,757 in 2014.

The directors recommended a dividend payment of €108,624 after no dividend payout in fiscal 2013. The directors also feel the significant risks and uncertainties pertaining to the business “are the increased competition from the UK retailers who have stronger buying powers and the threat to the historically grocery-based retailers expanding into the non-grocery sector”.

The balance sheet of the long-established business remains strong however, with shareholder funds of €12.32m. The figures show the firm last year incurred €1.33m in payments to acquire tangible fixed assets.