Power City sees pre-tax profits reach €5.8m

Pre-tax profits at Irish-owned electrical retailer Power City increased by 4% to €5.8m last year.

The company increased its profits despite revenues decreasing by 10%, from €77.4m to €69.5m, in the 12 months to Sept 24 last year.

The figures returned to the Companies Office show that, by Sept 24, Power City had accumulated profits of €78.4m.

Numbers employed at the Liam McKenna-owned firm last year increased by one to 199.

According to the directors’ report, “the directors are satisfied with the results for the year”.

The filings show the company paid a dividend of €3.6m to its shareholders in 2011. This followed a dividend payout of €4.6m in 2010.

The accounts for Power City show the company increased its cash during the year from €50.7m to €53.1m.

Power City’s stores are located in the eastern part of Ireland with its Dublin stores at Tallaght, Sallynoggin, Finglas, Coolock, Fonthill, while there are also stores in Bray, Naas and Drogheda.

The company had seven directors, according to the documents, including five from the McKenna family that established the firm.

The figures show the company’s profit takes account of €1.1m in non-cash cost of depreciation. The firm also incurred €1.1m in capital expenditure during the year. This followed €204,000 in capital expenditure in 2010.

The directors’ report states that “the principal risk currently facing the company is the economic environment in Ireland, which continues to be very difficult for retailing. The company financial results are dependent on maintaining its current market in a very competitive marketplace.”

The figures show that Power City’s cost of sales declined from €62.3m to €54.4m, with administrative expenses increasing from €10.4m to €10.5m.

The figures show that the firm’s operating profit declined marginally from €4.5m to €4.4m.

However, net interest payments received increased from €1.08m to €1.39m last year, resulting in the higher pre-tax profits.

The figures show that 185 of the company’s staff are in sales, with seven in management and administration and the remaining seven being directors.


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