Arcadia Group slashes Irish losses by 90%
Accounts for Arcadia Group Multiples (Ireland) Ltd, show the company’s revenues decreased from £19.74m to £19.57m in the 12 months to the end of August last. The firm had revenues of over £45m in 2012 before it spun-off its Top Man and Top Shop business into a separate Irish firm in 2012.
The firm recorded a pre-tax loss of £763,000 last year. This followed a pre-tax profit of £6.7m in 2013.
However, the 2013 pre-tax profit arose from the exceptional gain of £8m arising from the sale of the aforementioned Top Shop/Top Man operations.
The directors’ report section of Arcadia Ireland’s latest accounts states: “During the year, turnover declined by 1% as all brands found trading conditions in Ireland extremely difficult. To counteract this decline in performance, the company has sought to reduce costs wherever possible.”
The directors further state that during the year the company incurred an exceptional charge of £84,000.
According to the report: “This related to the movement on a provision against the future-leasing obligations of the company’s loss-making stores.”
The company didn’t recommend the payment of a dividend last year following a dividend payout of £77m in fiscal 2012.
On the firm’s developments, the directors state that “the retail market continues to be challenging.
“However, the board is optimistic that through focusing on marketing and product and cost control, improved margins will be delivered,” it said.
Numbers employed by the group last year declined from 391 to 385, with staff costs rising from £5.38m to £5.4m. The firm’s accumulated profits last year fell from £13.9m to £12.4m.
The directors say that the retail environment is very challenging.
