Revenues at Elverys surge to €113m but higher costs hit profits

Directors at Elverys say that 'investment in the online platform, store portfolio and warehouse automation continues'

Intersport Elverys continued on its growth strategy last year with the €12m purchase of the flagship Debenham’s outlet on Cork’s Patrick Street last May where Elverys is likely to occupy around 20% to 30% of the iconic 1920s-built store. File picture: Larry Cummins

Trading at the InterSport Elverys sports retail chain “remained strong” in 2022 as revenues surged by 19% to €113.85m.

That is according to new accounts which show that higher costs contributed to pre-tax profits at Staunton Sports Ltd declining by 26% to €6.05m.

The Mayo-headquartered chain continued on its growth strategy last year with the €12m purchase of the flagship Debenham’s outlet on Cork’s Patrick Street last May where Elverys is likely to occupy around 20% to 30% of the iconic 1920s-built store.

On the 2022 performance, the directors state that trading performance "remained strong”.

The directors said that they "are very satisfied with the trading performance” as revenues rose by €18.2m from €95.62m to €113.85m, but they also said that "key variables impacting profits each year include inflationary pressures, supply chain disruption, payroll costs, energy costs, rent charged, input costs and exchange rates”.

Profits also decreased as the business received zero in other operating income in 2022 compared to €1.74m in 2021. Numbers employed by the sports retailer during 2022 rose from 528 to 555 as staff costs increased from €11.3m to €14.53m. The brand operates 47 stores here and online.

The profits for 2022 take account of non-cash depreciation costs of €1.89m.

Investment

On the company’s future developments, the directors state that they are cautious of the significant threats posed to the business by inflationary pressures and cost-of-living increases "but will continue to develop the business in the ensuing year”.

They say that "investment in the online platform, store portfolio and warehouse automation continues”.

In a post-balance sheet event, the directors state that an automated warehouse installation "is practically complete with a view to being fully operational in the first quarter of 2024”.

The retailer recorded post-tax profits of €5.25m in 2022 after incurring a corporation tax charge of €800,896.

The profits for 2022 further strengthened the group’s balance sheet as shareholder funds increased to €26.9m which included accumulated profits of €20.83m. The group’s cash funds declined from €7.7m to €5.98m.