Hughes & Hughes books turns small profit

The company behind defunct bookseller Hughes & Hughes recorded a modest profit last year after slashing costs.

Accounts for two years for Sivota Ltd which were filed with Companies Office show it had a small profit of €6,089 in the 12 months to the end of February. In the previous year, it posted a loss of €494,874. Lease costs fell from €477,500 to €313,333.

Derek Hughes, founder of Hughes & Hughes, sold his one third shareholding in the firm in March 2014 to businessmen Pierce Molony and Aidan Masterson, who are behind the Bus Stop newsagent business.

The book business had combined losses of €1.35m in 2013 and 2012 which led to the closure of two stores at Dundrum and Swords, in 2014. It struck a franchise agreement with Eason for three remaining stores at Swords, Santry, and Ennis.

Hughes & Hughes Ltd collapsed in February 2010 with debts of almost €15m. Mr Hughes subsequently resurrected a downsized business within months with the investment of Mr Masterson and Mr Molony through Sivota Ltd.

A note in the 2015 accounts states the firm’s shareholders confirmed that the required financial support will be forthcoming which will enable the company to meet its debts as and when they fall due.

The firm’s cash pile in the 12 months to the end of February 2015 increased from €26,052 to €180,464. In a note attached to the Sivota Ltd 2014 accounts, the directors said with the store closures and the consolidation of the remaining stores into a franchise brand, the company was in a position to return to profitability in the near future.