Smyths Toys' UK operation sees record profit

Galway-headquartered toy store recorded its best ever performance despite its ‘bricks and mortar’ stores being shut from January to April last year

The business is operated by the low-profile Smyth family from Co Mayo.

The UK business of Galway-headquartered retail toy giant, Smyths Toys last year enjoyed record pre-tax profits of £18.11m (€20.77m).

New accounts filed by Smyths Toys UK Ltd with Companies House show the business almost doubled its pre-tax profits last year from £9.5m to £18.11m.

This followed revenues soaring to a new record level of £788m (€903.75m) with bumper sales of best-sellers, Lego, Barbie, Nerf Guns, Paw Patrol and My Little Pony toys.

Last year, revenues at the business increased by £167.9m, or 27%, from £620m to £788m.

The business is operated by the low-profile Smyth family from Co Mayo and three members sit on the board — Anthony Smyth, Liam Smyth and Patrick Smyth. Thomas Smyth resigned as a director on November 1, 2021.

The directors said they were pleased with the results, particularly given the current economic climate, the competitive market place and the outbreak of Covid-19.

The UK business recorded its best ever performance despite its ‘bricks and mortar’ stores being shut from January to April last year due to UK government Covid-19 restrictions.

In their report, the directors said “all stores fully reopened and performed strongly for the remainder of the year”.

The directors said “it is envisaged that further expansion will occur in the UK market in the coming years through the opening of new stores”.

The company recorded post-tax profits of £13.18m after paying out corporation tax of £4.93m.

Numbers employed across the UK business last year increased from 2,901 to 2,979 and staff costs rose from £42.66m to £45.49m.

The UK company last year paid no dividend after paying out a dividend of £31m in 2020.

Smyths Toys operates 108 stores in England, Scotland and Wales with another seven in Northern Ireland.

Separate accounts for Smyths Toys NI Ltd show pre-tax profits at the Northern Ireland unit increased by 59 per cent to £1m last year as revenues increased by 9 per cent from £46.47m to £50.7m.

Combined revenues at the UK and NI arms of the Smyths Toys business last year totalled £838.7m (€960m).

In total, the group operates 231 stores across its entire network in the UK, Ireland and continental Europe.

Along with the 115 stores in England, Scotland, Wales and Northern Ireland, Smyths Toys operates 21 in the Republic of Ireland, 67 in Germany, 17 in Austria and 11 in Switzerland.

The profits for the UK operation take account of non-cash depreciation costs of £13.35m.

The company’s lease costs increased from £27.96m to £33.2m.

Shareholder funds at the end of December last totalled £33.46m that included accumulated profits of £30.46m.

The UK firm’s cash funds increased from £4.97m to £9.5m.

The directors said the principal risks and uncertainties facing the business are competitive price pressures, foreign currency fluctuations, together with Brexit and the Covid-19 pandemic.