Golden Discs expects strong fourth quarter

Golden Discs expanded in 2019, opening four new stores.

The directors of the Golden Disc group are anticipating a strong fourth quarter this year due to pent-up demand after the Covid-enforced closure of its bricks and mortar stores.

That is according to new accounts which show that pre-tax profits at Golden Disc Group Ltd declined by 39% from €200,963 to €122,429 in the 12 months to the end of December 2019.

The company recorded the drop in profits as revenues remained flat at €13.2m.

The directors say that they anticipate that the initial trading period after Covid-19 restrictions are eased “will be uncertain as consumers re-adjust and trading is broadly anticipated to take some time to resume to pre-Covid trading levels”.

Pent-up demand

They say that they anticipate a strong fourth-quarter trading period and into 2022 “as pent up demand and associated spend are satisfied with prolific music and film release schedules”.

The accounts state that, during the Covid-19 lockdown, the company has continued to trade successfully through its website. The pandemic struck last year after a period of expansion for Golden Disc in 2019 when numbers employed increased from 107 to 138 as the business opened new stores in Drogheda, Tralee, Sligo, and Dublin in the final quarter of 2019.

The directors say that “the online business has continued to perform well showing significant growth on the previous period and the company plans increased investment in this space”.

They say that they plan “to further increase its current market share and profitability through increased door openings and improvements to the product mix in the coming year”.

Accumulated profits at the company at the end of December 2019 totalled €484,812. The company’s cash funds totalled €2.34m.