Expansion leaves retailer Euro General in the red

Expansion costs and a €1.25m write-off in a subsidiary resulted in discount retailer Euro General going into the red last year.

Euro General Retail Ltd operates a network of more than 80 Eurogiant retail stores around the country.

The accounts show that the investment made in the business in its fiscal 2015 year, with the opening of eight new stores, contributed to a €1m pre-tax loss.

The company had a profit of €1.25m in 2014.

Chief executive Charlie O’Loughlin opened his first discount store on Dublin’s Moore St in 1990.

Today, the business employs more than 600 people across the country, having seen an increase of 48 last year. Staff costs rose from €10.42m to €11.23m.

The expansion contributed to revenues increasing 13% to €68.5m in the 12 months to May last year.

The directors say that “gross margins decreased to 41% compared to 43% in 2014”. There were interest charges of €284,224.

The Eurogiant stores formerly traded as Euro2.

The group had an after-tax loss of €663,226, after writing off its investment in the subsidiary company Hamill & Henderson at a cost of €1.25m.

According to the directors, the results for the year and the position of the group at the balance sheet date were satisfactory.

“During the year, the company expanded its activities and product sales now include higher value, multi-price items,” the directors say.

“As a result, stock levels have increased.”

The firm has been vocal over the high costs of rents in the past.

The figures show that the company’s lease rental costs last year declined from €6.15m to €6.05m.

Last May, the firm had accumulated profits of €17.3m. Its cash pile had increased from €1.16m to €1.64m, while directors’ remuneration last year increased slightly to €154,921.

The firm’s cost of sales increased from €34.67m to €40.42m, while administrative costs rose from €13.43m to €16.1m.

The profit last year took account of non-cash depreciation costs of €2.2m.


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