The Peter Mark Hair Salon group took a €18.58m 'haircut' to revenues in 2020 due to Covid-19 shutdowns.
New accounts filed by Peter Mark Hair Salon Unlimited Company show that pre-tax profits more than halved to €493,458 in the 12 months to the end of December 2020.
The group only recorded a pre-tax profit after receiving €9.9m in Government Covid-19 supports that included €9m in Government Covid-19 wage support costs.
The hairdressing industry was one of the hardest hit by Covid-19 restrictions and the directors state that salons were closed for a total of 22 weeks in 2020 in accordance with Government guidelines.
This contributed to revenues in the group's Republic of Ireland and Northern Ireland business decreasing by 37% from €50.1m to €31.53m in 2020.
Numbers employed decreased by 440 from 1,805 to 1,365.
The directors said that the impact of Covid-19 was reduced due to plans implemented by management including the introduction of cost reduction measures and availing of Government support.
They said that the group availed of various programmes to retain 1,300 of staff on the payroll despite being fully closed.
They also said that the Government supports greatly facilitated the retention of those employees within the business during the pandemic.
The business has been operating for over 60 years after opening its first salon on Dublin's Grafton Street in 1961 and today the Irish owned company operates 69 salons across the country.
The group’s exceptional costs relating to Covid-19 include €478,623 spent on 'Salon PPE’, operating costs of €982,355 for the closure period, advisory costs of €97,000 and €13.2m payroll costs for employees in receipt of Government support.
The group’s overall staff costs reduced from €44.43m to €31.87m as the number in sales reduced from 1,747 to 1,299 while those employed in administration increased from 58 to 66.
The profit for 2020 takes account of non-cash depreciation costs of €1.29m.
At the end of December 2020, the group had shareholder funds of €7.98m while the group’s cash funds increased from €7m to €11.5m.
The group recorded a post tax profit of €299,081 for the year after paying corporation tax of €194,377.
