Blow for Dunnes as retailer suffers £23m loss in UK

PRE-TAX losses at Dunnes Stores’ operation in Northern Ireland and Britain increased more than four fold to £23m last year.

Since the start of the year the family-owned retailer has shut down all of its stores in England and Scotland but continues to operate 16 stores here. The Dunnes Stores (Bangor) Ltd firm covers the activities of Dunnes in Northern Ireland, England and Scotland and for the business’s last full year in England and Scotland the pre-tax loss is mainly due to an exceptional £18.2m non-cash cost concerning a write down in assets.

A note attached to the accounts said that the write down took place “to reflect current market conditions”. Revenues at the company totalled £113.43m in the 53-week period to the end of December 29, 2017, compared to revenues of £99.85m in the prior 47-week period.

The company has not commented publicly about its exit from Scotland and England and the accounts shed no light on the reasons behind the decision.

The only reference in the accounts is a line in the directors’ report which confirms the move. The report said: “The company has ceased trading at its current stores in Great Britain post year end.

“The stores in Northern Ireland continue to operate.”

The accounts show that the firm paid £4.79m in dividends and this followed a dividend of £250.8m last year.

The pre-tax loss also takes into account non-cash depreciation costs of £5.498m and foreign exchange gains of £1.24m. Numbers employed by the company last year reduced from 1,289 to 1,230.

Due to the longer period under review last year, staff costs increased going from £15.2m to £17.17m.

At the end of last year, the company’s accumulated profits stood at £48m while its cash pile declined from £40.1m to £39.46m.