Pre-tax profits at the main Irish unit of sports retailer JD Sports last year declined by 21% to €18.76m.
New accounts for John David Sports Fashion (Ireland) Ltd show that the business recorded the decrease in pre-tax profits as revenues increased by 13% from €167.3m to €189.03m in the 12 months to January 29th last year.
The sports retailer increased revenues as the number of outlets rose from 19 to 22.
The directors state that the company continues to look at all opportunities to improve market share and protect margin whilst exercising strong cost controls.
The directors state that the increase in turnover can be attributed to the company's retail stores re-opening after the Government enforced lockdowns during the prior year due to Covid-19.
They state that "a reduction in gross margin and an increase in operating costs has led to a reduction in operating profit before interest and tax. However, the directors are satisfied with the performance of the business and its future prospects."
They further state that with the support of parent company, JD Sports Fashion, the company continued to put in place mitigating activities to combat the impacts of Brexit.
They state that this has included the opening of a new 65,000 sq ft dedicated warehouse in the north-west of Dublin.
The directors state that the warehouse is now fully operating supplying both products to store and fulfilling online orders in the Republic of Ireland.
The company recorded operating profits of €20.3m and interest costs of €1.53m reduced profits of €18.76m.
The retailer received no government Covid-19 grants last year after receiving €1.3m in the prior year. No dividend was paid last year after a dividend of €18m was paid out in the previous year.
Numbers last year employed increased from 775 to 952 as staff costs rose from €9.8m to €12.99m.
The profit last year takes account of non-cash depreciation costs of €9.44m.
The business recorded post tax profits of €16.3m after paying corporation tax of €2.46m.
At the end of January 2022, the firm's shareholder funds totalled €38.09m. The company's cash funds increased from €54.8m to €59.64m, today's figures show.
Reporting by Gordon Deegan
