Power City trades strongly as Insomnia revenues hit by pandemic          

Insomnia Coffee File Picture

Revenues at Power City topped €100m for the first time, as the appliance retailer benefitted from the stay-at-home buyers.    

New accounts show that pre-tax profits at Power City Ltd climbed 26% to €7.8m in the 12 months to the end of September as revenues rose 12.5% to €100.2m. 

The financial year covers the first six months of the Covid-19 pandemic, in which the directors of the McKenna-family-owned firm said trading "continued to be strong”.

It paid out a €2m dividend to its owners last year, only slightly lower than the €3m it paid out in 2019.

Changed habits

On the impact of Covid-19, the directors said that consumers buying habits may change permanently.

The business employed 244 people at a cost of €8.6m, while the cash-rich firm saw its reserves grow sharply to over €48m from €32.7m in the year. Directors' pay for the six directors rose to €1.58m.

Meanwhile, the Covid pandemic led to "severe disruption" at the Insomnia coffee chain business in the Republic, according to its parent company BHJ Holdings.

Insomnia’s rapid growth in the Republic means it operates 170 stores and 500 self-service sites, but many have been temporarily shut. For 2019, BHJ said Irish revenues increased 19% to €33.9m, while UK revenues rose by €488,000 to  €2.8m.