Revenues at the expanding DIY and trade product chain of Screwfix outlets here this year increased by 25% to €82.6m.
New accounts filed by Screwfix Direct (Ireland) Ltd show that revenues increased by €16.7m from €65.97m to €82.6m in the 12 months to the end of January this year as the number of outlets here increased by 10 from 24 to 34.
The number of Screwfix stores has since increased to 36 today and comprises outlets at seven locations in Dublin, three in Cork with others located in the likes of Ashbourne, Athlone, Ballina, Bandon, Carlow, Clonmel, Dungarvan, Kilkenny, Galway, Ennis, Naas, Navan, Newbridge, Limerick, Longford, Portlaoise, Roscommon, Tullamore, Waterford, Wexford, Tralee and Westport.
The expansion costs at the business contributed to a pre-tax loss of €1.56m which was down sharply on the pre-tax loss of €4m for the prior year.
The business last year recorded an operating loss of €929,000 and interests costs of €632,000 resulted in the pre-tax loss of €1.56m.
Numbers employed by the business increased from 277 to 400.
In their report, the directors state that the company "had a decrease in like for like sales of 4.7% as compared with 2021/22"
The 4.7% decrease followed a 57.6% like for like increase in sales in the prior year.
The directors state that the 4.7% decease "is largely attributable to sales in the prior year being distorted by the effects of the pandemic whereby customers spent more time on home improvements due to increased time spent at home".
The directors state that gross margin increased by 3% to 38% driven by greater sales participation of higher margin product ranges.
They state that "the increase in overheads is in line with the new store opening plan".
They add that "as the new stores mature the expectation is that sales will increase and the business will move into a profitable position in the next two to three years".
The firm is part of the Kingfisher plc group of companies and the directors state that "the company is confident that it will effectively manage through the current period of higher inflation, rising interest rates and the associated cost of living challenges in the Republic of Ireland". The loss last year takes account of non-cash depreciation costs of €2.73m. Staff costs increased from €6.36m to €9.47m. Directors' pay totalled €140,000.
On the firm’s future developments, the directors state that the company intends to develop the trade counter network by opening further locations. The accounts state that the expansion is to be funded by inter-company loans from the group.
They add that the business "also intends to develop its range further to meet the needs of customers more fully".
On the risks facing the business, the directors point to 'economic risk’ where the biggest risk is weaker GDP growth here, political uncertainty and social unrest, higher wage inflation and significant cost inflation across raw materials, utilities and third party labour.
At the end of December last, the company had a shareholders’ deficit of €765,000 which was made up of accumulated losses of €7.76m offset by called up share capital of €7m. The company's cash funds decreased from €1.95m to €354,000.
Reporting by Gordon Deegan
