Dixons returns to profit after €7.9m gain

THE Irish arm of the Dixons retail operation last year returned to profit to record pre-tax profits of €6.36m after an exceptional gain.

The return to profit followed DSG Retail Ireland Ltd recording pre-tax losses of €24.84m in 2016.

Revenues at the company, headed by Mark Delaney, managing director of parent group, Dixons Carphone Ireland, last year increased by 2pc going from €155.65m to €158.39m. The profit in the 12 months to the end of April 29 2017 arose from rationalisation costs associated with the Carphone Warehouse merger.

In 2016, the company booked an exceptional cost of €19.9m from the merger but reversed €7.9m of this cost last year resulting in the pretax profit of €6.36m.

The rationalisation arose from the firm rolling out its 3-in-1 store concept in Ireland. According to the directors’ report, the economic climate and competitive environment in Ireland remains challenging and the directors are continually driving measures to maximise shareholder value and funds.

The profit last year takes account of non-cash depreciation costs of €2.19m. The firm’s rent bill reduced from €11.5m to €9.1m.

Numbers employed last year dipped from 445 to 421 with staff costs reducing from €15.6m to €15.3m. Emoluments to directors last year increased from €268,000 to €353,000 with certain remuneration being borne by a group company. Cost of sales last year reduced from €153m to €150m.