Revenues at the Galway headquartered Smyths Toys UK business passed the €1 billion mark for the first time last year.
In a record sales year for Smyths Toys UK Ltd, revenues surged by 16% or £122.78m from £788m to £910.78m (€1.05 billion).
The business operates Smyths stores across England, Scotland and Wales and pre-tax profits increased by 8% from £18.11m to £19.49m (€22.46m).
The directors state that revenues increased due to an increase in footfall in the stores as customers returned to stores post Covid-19 restrictions and the addition of five new stores in 2022.
They state that the company's gross margin increased from 16% in 2021 to 18% in 2022, mainly due to management focus on costs.
The firm's buoyant performance resulted in the business paying out a dividend of £30m.
The directors state that they are particularly pleased with the results given the current economic climate and the competitive marketplace.
The business's revenues increased on the back of bumper sales of best-sellers, Lego, Barbie, Nerf Guns, Paw Patrol and My Little Pony toys.
The revenues are made up of £860.92m in retail sales and £49.86m in services to group companies.
Numbers employed by Smyths Toys UK Ltd increased by 326 from 2,979 to 3,305 and the directors state that the increase in staff numbers was due to an increase in footfall in stores and the five new stores.
On the future developments of the business, the directors state that it is envisaged that further expansion will occur in the UK market in the coming years through the opening of new stores.
The number of stores in England, Scotland and Wales today totals 113 and its separate Northern Ireland arm operates seven stores and recorded revenues of £56.19m last year and pre-tax profits of £1.1m.
The size of the overall business across the UK, Ireland and Europe has increased sharply since last year with the expansion into France following the acquisition of PicWic Toys in France in July 2022.
Today, Smyths Toys operates 41 stores in France and has also expanded to Holland with the opening of three stores there.
The firm's German business has also expanded with the opening of three new stores there since last year bringing the total to 70.
The numbers of stores in Austria and Switzerland has remained at the same level at 17 and 11.
The increase is the business last year has resulted in Smyths Toys having 283 stores today across Ireland, the UK, France, Germany, Austria, Holland and Switzerland.
Smyths Toys EU HQ Unlimited Co, which oversees the company's European business is unlimited, and is not required to file accounts.
The business is operated by the Smyth family from Co Mayo and family member and one of the directors of the business, Liam Smyth, died aged 60 in July.
Along with his brothers, the Claremorris native helped grow Smyths Toys to the thriving multi-national retail chain it is today.
Smyths Toys UK Ltd recorded post tax profits of £15.22m after paying out corporation tax of £4.26m.
Staff costs at Smyths Toys UK last year increased by 27% from £45.49m to £57.85m.
The profits take account of non-cash depreciation costs of £15.37m.
The company said its lease costs increased from £33.2m to £35.02m.
After the dividend payout off by the post tax profit, shareholder funds at the end of December last totalled £18.69m, which included accumulated profits of £15.59m.
The firm’s cash funds almost doubled from £9.52m to £17m.
The directors state that the principal risks and uncertainties include the business facing competitive price pressures and the potential impact of inflation.
They also said the firm's board received a letter from the UK Financial Reporting Council (FRC) in May 2023 concerning the firm's 2021 accounts.
The directors state that the FRC requested further information on a number of items including the firm's determination and treatment of the company’s dilapidated provisions and the company’s arrangement with Smyths Toys HQ UC.
They state that the company's correspondence with FRC closed satisfactorily with an agreement on a restatement to be made on the company’s 2021 cash flow statement.
A note attached to the new accounts states that the changes to the 2021 cash flow statement has no impact on the net increase on cash, no impact on profits and no impact on the balance sheet.
Reporting by Gordon Deegan
