Pre-tax profits at the Irish arm of clothing retailer, River Island last year increased by 65% to €7.29m.
New accounts show that River Island Clothing Company (Ireland) Ltd recorded the pre-tax profits of €7.29m despite revenues declining by 9% from €51.9m for the prior 53 weeks to €47.23m for the 52 weeks of 2023.
The retailer operated 23 stores here last year and the firm last year recorded Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) of €7.7m - which was up 45% on EBIDTA figure of €5.3m for 2022.
Numbers employed full time and part time at the business last year declined from 545 to 522.
The workforce was made up of 149 full time and 373 part time employees and staff costs last year increased marginally from €8.4m to €8.46m.
The directors said "the market for retailing of fashion clothing is fast changing with customer preferences for more diverse, convenient and speedier shopping journeys and with increasing competition especially in the digital space".
They further state that "geopolitical events have resulted in continuing supply chain disruption as well as energy, labour and food price increases, driving inflation and interest rates higher and resulting in weaker disposable income and lower consumer confidence".
The company last year paid out €10.33m in lease payments for land and buildings.
The business's profits were boosted by an onerous lease credit of €1.09m and a €357,000 impairment of stock reversal.
The company recorded a post tax profit of €6.24m after incurring a corporation tax charge of €1.04m.
At the end of December last, the company’s shareholder funds totalled €18.45m that included accumulated profits of €13.4m. The company’s cash funds decreased from €19.17m to €12m.
Separate accounts filed by UK parent of the Irish unit, River Island Clothing Co Ltd show that it recorded a pre-tax loss of £33m last year.
This followed revenues at the family-owned business declining by 19% from £715.3m for the prior 53 weeks to £578.1m for the 52 weeks of 2023.
The directors said that cost of goods inflation along with operating costs inflation, primarily due to wage increases led to a loss after tax of £24.6m after recording a corporation tax credit of £8.6m.
They said that '2023 was a year of reset for the business. Product ranges have been re-focused and a new leadership structure put in place with several key senior hires.
The business has invested in customer proposition and "the business is now starting to see the benefits from the investment".
They also said that "customers are reacting positively and that is delivering improved business performance. Despite the challenging trading environment so far this year, we remain positive about the outlook".
Reporting by Gordon Deegan
