Golden Discs reports a return to profit

Tuesday 02 September 2014 13.09
Golden Discs MD Stephen Fitzgerald said the company was expecting a strong finish to 2014
Golden Discs MD Stephen Fitzgerald said the company was expecting a strong finish to 2014

Entertainment retailer Golden Discs said it returned to profit in the year to the end of June, with the company earning almost €209,000 following a deferred tax provision.

Like-for-like sales grew by 7.5% during the period, according to the company, while margins also improved due to product changes and an “aggressive cost cutting programme”.

The company has faced difficult trading conditions in recent years, with the market for CDs and DVDs under pressure due to digital downloads and consumer spending reducing dramatically during the recession.

An examiner was appointed to the firm in 2009 following an application by Sony Music Entertainment, with Golden Discs ultimately closing a number of outlets as part of a restructuring programme.

In more recent times, however, the firm has begun to expand its retail network again and says it now employs more than 100 people across 17 stores.

Six of those outlets have been opened in the past year alone, with further store openings currently under consideration.

Managing director Stephen Fitzgerald said the company was hopeful for a strong end to 2014, with key releases due from artists including U2, One Direction and Rihanna.