Dubarry profits and revenues hit by 'challenging trading environment'

The group recorded a drop in profits after revenues decreased by 11% from €27.62m to €24.4m.

Pre-tax profits at the holding firm that operates the Dubarry clothing and footwear brand last year declined by €1m or 21.6% to €3.77m during “a particularly challenging trading environment”.

New consolidated accounts filed by the Ballinasloe registered FLWG Holdings Ltd show that the group recorded a drop in profits after revenues decreased by 11% from €27.62m to €24.4m in the 12 months to the end of November last.

The directors state that the year under review “was a particularly challenging trading environment, which resulted in weaker sales and tighter margins throughout the year”.

They state that “the challenges included the continued inflationary pressures combined with selling into weakening economies”.

They state that “this resulted in reduced sales and squeezed margins”.

The directors state that “the demand in certain economies was below expectations and this has resulted in the group carrying higher than anticipated stock levels at year end”.

The group’s balance sheet shows that the book value of stock at the end of November 2023 totalled €11.07m compared to €5.92m at the end of November 2022.

On the performance of the business in 2024, the directors state that they anticipate “a slightly improved trading environment in 2024 with inflation stabilising and interest rates reducing”.

They state that “this coupled with strong opening stock levels should combine to make 2024 an improved trading environment for the group”.

The FLWG Holdings directors, Eamonn Fagan, Michael Larkin and Michael Walsh state “the group hopes to retain its market share in these improving economies and it is continuing to look at new opportunities to expand”.

The group last year didn't pay out any dividend after paying out a dividend of €3m in 2022.

Employment

Numbers employed by the business remained at 123 and ‘Irish staff costs’ increased from €3.1m to €3.3m while ‘other staff costs’ increased from €1.97m to €2.27m.

A breakdown of those employed shows that 60 were employed in marketing, 29 in administration, 29 in production and five in research and development.

Directors’ pay, including pension contributions, last year increased from €431,410 to €455,937.

The pre-tax profit last year takes account of non-cash depreciation costs of €517,722.

F.L.W.G. Holdings last year recorded post-tax profits of €3.32m after incurring a corporation tax charge of €447,804.

Accumulated profits reduced from €24.55m to €16.82m arising from a share buyback of €11.05m offset by the post-tax profits of €3.32m.

Shareholder funds totalled €20.33m and the group’s cash funds increased from €3.42m to €4.37m.