Top Shop Ireland back in black with €366k profit

The firm behind the Top Man/Top Shop retail brand in Ireland returned to profit, last year, with a pre-tax surplus of £289,000 (€366,490).

Top Shop Ireland back in black with €366k profit

Accounts filed by the Lady Tina Green-owned Top Shop/Top Man (Ireland) Ltd show revenues rose 2% to £23.42m in the 12 months to the end of August.

Lady Green is married to UK retail tycoon, Philip Green and they jointly operate the Arcadia Group which also counts Top Shop among its brands.

In contrast, filings for another Green firm, Arcadia Group Multiples (Ireland) Ltd show pre-tax losses mounted during the same period. It acts as holding company for the Burton, Dorothy Perkins and Evans brands

The firm’s accounts show that pre-tax losses more than doubled last year to £1.74m. Revenues at the firm fell by 10% to £17.6m.

A third Green firm, Wallis Retail (Ireland) Ltd recorded a pre-tax loss last year of £419,000 after recording a pre-tax profit of £262,000 in 2014.

The firm also saw revenues decline by 9%, to £9.9m, in the 12 months to the end of August. The Wallis Ireland loss chiefly arose from a non-cash writeoff of £270,000 relating to the provision of future leasing obligations of its loss-making stores. The firm employs 184 with staff costs last year amounting to £2m.

On the Top Shop/Top Man firm, the accounts show during the year, the company incurred an exceptional charge of £357,000 in connection with a provision against leasing obligations of the company’s loss-making stores.

In the accounts the company’s directors said that the retail market continues to be challenging. They added: “However, the board is optimistic that through focusing on marketing and product and cost control, improved margins will be delivered.”

Top Shop here operates from a number of locations including Galway, Athlone, Co Westmeath, and multiple stores in Dublin. The figures show that the firm last year spent £5.26m on operating leases.

Numbers employed by the firm last year dipped marginally from 365 to 361 with staff costs decreasing from £4.86m to £4.6m.

Arcadia Group Multiples (Ireland) Ltd also incurred an exceptional charge relating to lease obligation provisions arising from lossmaking stores. This figure amounted to £726,000. Numbers employed by that business fell from 385 to 360 with staff costs falling from £5.4m to £4.64m.

The loss at the firm last year took account of non-cash depreciation costs of £130,000. Accounts for a fourth Green-owned firm, Miss Selfridge Retail (Ireland) Ltd show that it returned to pre-tax profit last year with a surplus of £426,000.

This followed the firm recording a pre-tax loss of £54,000 in 2014. The firm’s revenues increased from £3.8m to £4m in the 12 months to the end of August.

According to the directors’ report: “while the retailing environment in Ireland is highly competitive, the board is optimistic that the ongoing investment in stores and product will contribute to the company’s objective of growing with both local and underlying sales”.

It added: “Further improvements in the supply chain, including tight stock and commitment management, will be key to ensuring that gross margins are optimised going forward.” Numbers employed by the Miss Selfridge Ireland firm rose from 81 to 91 during the year.

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