€512k costs of reorganisation hit Kilkenny Group profits
REORGANISATION costs totalling more than €510,000 at the family-owned Kilkenny Group, convulsed by a bitter family row last year, contributed to pre-tax profits declining by 25pc.
New accounts filed by the luxury goods retailer show the business recorded pre-tax profits of €912,920 in the 12 months to the end of January 2018 – down on the €1.2m pretax profits in the previous 12 months.
The drop in pre-tax profit came as revenues dipped by 2pc from €30.44m to €29.9m.
No detail is provided on the background to the ‘re-organisational costs’ of €512,185 in the accounts but the costs coincided with an expensive row between chief executive Marian O’Gorman and her son, the group’s former marketing director Greg O’Gorman, that ended up before the High Court. The row was triggered by Ms O’Gorman sacking her son in 2016 and the High Court was told this summer the case was “resolved to the satisfaction of all parties”.
In the settlement, the four children of Ms O’Gorman are to get shares in the business.
Operating profits at the group last year increased by 31.5pc from €1.095m to €1.44m and it was the €512,185 ‘re-organisation costs’ that resulted in the drop in pre-tax profit.
In the 2017 accounts for Clydaville Investments Ltd, the directors state “in light of the continuing competitive climate of retail, the directors are very satisfied with the
operating results which show an increase in sales and net funds”.
The directors state they will try to maintain and increase the group’s sales and look for future profitable growth opportunities while also reducing costs.
The business operates 15 stores around Ireland with its HQ in Killarney, Co Kerry.
The group’s flagship store is on Nassau Street in Dublin.
Numbers employed at the group last year reduced from 270 to 256, with staff costs increasing from €7.27m to €7.65m. Ms O’Gorman and finance director Conor Lynch are listed as directors of the business – directors’ pay last year increased from €342,021 to €376,255.
Shareholder funds at the group totalled €12.19m while the group’s cash pile reduced from €3.6m to €2.78m.