Carphone Warehouse sees Irish pre-tax losses soar to €9.7m

Pre-tax losses at the Irish arm of Carphone Warehouse last year continued to mount as revenues declined.

New accounts filed by The Carphone Warehouse Ltd with the Companies Office, show the firm recorded a pre-tax loss of €9.69m and this followed a pre-tax loss of €9.14m in fiscal 2012.

The accounts show the firm recorded the increased losses after revenues at the firm declined by 3% from €108.73m to €105.43m in the 12 months to the end of Mar 30, 2013.

The returns show the firm last year received a cash injection of €45m from its parent.

The cash injection changed a net deficit position of €28.6m to net assets totalling €7.6m at the end of March last.

Last year’s loss resulted in accumulated losses at the firm last year increasing from €29m to €37.7m and according to the directors “this reflects an ongoing competitive market place, impacting trading margins during the period”.

The note states the parent company has provided a written consent, which is legally binding, “to continue to provide necessary financial support and other resources to the company for the foreseeable future”.

The figures show the firm’s cost of sales marginally increased from €84.58m to €84.94m in spite of an drop in revenues.

However, the firm reduced its operating expenses going from €31.19m to €27.87m. The firm’s operating losses increased marginally from €7.04m to €7.3m.

The loss last year takes account of non-cash depreciation costs totalling €1.6m while the firm’s bank interest payments last year of €2.3m contributed to the loss.

The cost of the firm’s operating lease rentals on property last year reduced from €6.7m to €6.3m.

A tax credit of €998,046 resulted in a post tax loss of €8.69m.

Numbers employed by the firm last year increased from 586 to 598 and the figures show that the numbers employed are broken down between 596 in sales and administration with two in management.

Staff costs at the firm last year decreased by 19% from €16.53m to €13.29m.


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