Poor trading conditions contributed to pre-tax losses increasing by 38% to €4.6m at the Irish arm of Carphone Warehouse last year.
Accounts just filed by the Irish subsidiary of Europe’s biggest independent mobile phone retailer show that pre-tax losses increased to €4.6m after revenues dipped by 3.5% from €107.2m to €103.4m in the 12 months to the end of April last year.
The firm’s accumulated losses of €21.4m and net liabilities of €21.1m at the end of Apr 2011 “reflects a decline in profitability and poor trading conditions during the period”, according to the firm.
The filings show The Carphone Warehouse Ltd increased the number of employees from 435 to 475 during the year, with staff costs rising from €13.4m to €14.8m.
A note on the company’s going concern status states the parent company, Best Buy Europe Distribution Ltd, “has indicated its intention to continue to provide necessary financial support and other resources to the company for the foreseeable future and for a period of at least 12 months”.
All of the firm’s revenues are generated in Ireland and the figures show that emoluments to directors increased from €300,455 to €891,723.
The filings confirm that the losses take account of depreciation costs of €2.089m with the firm’s operating leases topping €5.3m last year.
The directors state that it is their intention “to continue to develop the activities of the company”.
The figures show that the firm’s cost of sales decreased from €80.69m to €77.53m with net operating expenses increasing from €28.6m to €28.8m. The firm recorded a decrease in gross profit from €26.5m to €25.9m.
The filings show that the firm’s operating losses increased by 26% from €2.159m to €2.953m with net interest of €1.7m adding to the losses.
The figures show that the firm’s cash last year increased from €2.09m to €2.13m.
The directors do not recommend the payment of a dividend.
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