The family owned retail group, Kilkenny Design last year sustained a €15.27m hit to revenues due to the impact of the Covid-19 pandemic.
That is according to new accounts for the group's holding company, Clydaville Holdings Ltd which show that the business recorded a pre-tax loss of €2.27m in the 12 months to the end of January 31st this year.
The chief factor behind the Killarney registered group recorded the pre-tax loss was a non-cash write down of €2.389m reflecting the reduced market value of group owned buildings.
Revenues for the year decreased by 45% from €34.15m to €18.88m.
The group operates 17 retail outlets and five cafés across Ireland, some of which are co-located and a growing online business and the group also incurred €569,492 in re-organisation costs last year.
The business last year recorded operating profits of €765,227 which were down 8.5% on the operating profits of €836,312 for the prior year.
The group achieved the operating profit after benefiting from 'other income' of €3.4 million.
Appointed ceo in April, Evelyn Moynihan said: "The pandemic-induced closure of stores and restaurants, with city centre workers working remotely, and the absence of international tourism all impacted turnover in 2020."
Ms Moynihan said that "it is a tribute to the retail group's colleagues and management that operating profits were sustained, year on year, in the grip of an unprecedented pandemic".
Ms Moynihan said that during the pandemic "the business remained customer-centric at all times, and our eCommerce focus during lockdown with innovation in areas like Virtual Reality (VR), investment in our retail stores and other technology and logistics investment mitigated some of the revenue declines".
The directors’ report states that "despite the lockdowns subsequent to year end, the company has continued to be cash positive during FY21".
They also state that they "are very confident that, in co-operation with our suppliers and other stakeholders, we will return to formal business activity levels over the course of FY22 without incurring any long term negative effect on our financial position".
The directors state that Covid-19 "will not have a material adverse impact on the company’s ability to continue as a going concern".
The directors' report states that significant growth in online sales, management of costs and Government supports were key contributors to achieving an operating profit in a pandemic year.
The directors state that the business has availed of relief on loan repayments for a period of six month with group lenders along with availing of Government Covid-19 Temporary Wage Subsidy Support and all other available Government supports.
They state "this has had a very positive impact in countering the downturn in income for the period".
The pre-tax loss last year takes account of combined non-cash depreciation and amortisation costs of €786,722.
Directors' pay last year decreased by 37.5% from €508,076 to €317,921.
At the end of January last, the group's shareholder funds totalled €7.3m.
The group’s cash funds declined from €4m to €2.97m during the period.
