Revenues at the expanding Irish network of Screwfix stores topped the €100m mark last year for the first time on the back of five new store openings.
New accounts filed by Screwfix Direct (Ireland) Ltd show that expansion costs combined with higher interest charges contributed to pre-tax losses increasing by 32.6% to €2.07m in the 12 months to the end of January 31st this year.
Revenues increased by 27% from €82.6m to €104.9m with the five new store openings bringing the network to 39.
The network has since grown to 40 in 2024 and comprises seven locations in Dublin, three in Cork with others located in the likes of Ashbourne, Athlone, Ballina, Bandon, Carlow, Carrick on Shannon, Clonmel, Drogheda, Dundalk, Dungarvan, Kilkenny, Letterkenny, Galway, Ennis, Monaghan Naas, Navan, Newbridge, New Ross, Limerick, Longford, Portlaoise, Newcastle West, Roscommon, Tullamore, Sligo, Waterford, Wexford, Tralee and Westport.
The directors state "as the new stores mature, the expectation is that sales will continue to increase and the business will move into a profitable position in the next two to three years"s.
Numbers employed increased from 400 to 511 as staff costs last year increased by 41% from €9.47m to €13.3m.
The main activity of the business continues to be the sale of trade and DIY home improvement products to tradespeople and the general public.
The directors state that the company had a like-for-like revenue increase of 14.8% and the increase was a combination of higher sales volumes in new stores and higher average selling products.
The directors state that the increase in prices is as a result of significant price inflation, across raw materials, utilities and labour.
The directors state that the business recorded an operating loss of €576,000 "with an increase in overheads in line with the new store opening plan".
Profits were also hit by interest payments more than doubling from €632,000 to €1.49m and the directors state that the after tax loss increased from €1.6m to €1.9m.
The directors of the Kingfisher plc-owned business said that the expansion of the Screwfix trade counter network in the Republic will be funded by intercompany loans from the group.
Directors' pay last year increased from €140,000 to €185,000.
The loss last year takes account of non-cash depreciation costs of €3.55m.
At the end of December last, the company had a shareholders’ deficit of €2.69m which was made up of accumulated losses of €9.69m offset by called up share capital of €7m. The company's cash funds decreased from €354,000 to €235,000.
Reporting by Gordon Deegan
