Pre-tax profits at the tech retail group, which purchased DID Electrical last December, declined by 23% to €1.36m.
New accounts filed by Apple reseller, Select Technology Sales and Distribution Group Ltd show that the group recorded the drop in profit after revenues dipped by 10.5% from €193.55m to €173.1m in the 12 months to the end of September last.
The group - which formerly operated the Compu b brand before rebranding to Select - purchase the family owned DID Electrical on Decemnber 12th last and in the new accounts the directors state that they believe that "the acquisition will be cash positive in the initial period to 30 September 2024".
The DID Electrical purchase from the Houlihan family adds 23 stores to the group and prior to the DID Electrical purchase, the Select Group was a premium Apple re-seller across 34 locations in Ireland and the UK.
Select Tech is owned by its management team of four directors, led by managing director Ciaran McCormack and financial director Alan Victor and group's Irish revenues last year decreased by 7pc from €57.67m to €53.56m.
The group recorded 69% of its revenues in the UK where revenues declined by 12% to €119.55m last year.
The directors state that in the year under review "the group successfully operated in a highly competitive markets in the UK and Ireland, particularly in the retail and educational sector and the group's business-to-business sales where they are primarily focused".
They state that "pressures remain principally in the UK and also the Irish retail and Education market sectors, and the release cycles remain challenging, however the directors are confident that the business will continue to grow and focus further on profitability enhancement".
They state that the group "has successfully rebranded the previous Compu b and Stormfront brands to trade under the business name of "Select" and continues to strengthen the brand across Ireland and the UK".
Last year, numbers employed reduced from 351 to 223 as staff costs declined from €11.64m to €10.18m.
The profits last year take account of non-cash depreciation costs of €622,051. Directors’ pay increased from €1.09m to €1.2m.
Operating lease rentals costs reduced from €3.78m to €3.55m.Defined pension contribution costs amounted to €578,681.
The group paid dividends of €109,000 during the year.
The group recorded operating profits of €1.67m and net interest payments of €312,323 reduced profits to a pre-tax profit of €1.36m.
The group recorded a post tax profit of €1.16m after paying corporation tax of €198,985.
Shareholder funds totalled €5.27m that included accumulated profits of €4.66m. Cash funds almost doubled from €4.72m to €8.3m.
Reporting by Gordon Deegan
