Pre-tax profits at family owned electrical appliance and tech retailer, Power City last year increased by 77% to €4.79m.
New accounts show that McKenna family owned Power City Ltd recorded the increase in profits as revenues dipped by 7% from €100.2m to €92.85m in the 12 months to the end of September 28 last.
The chief factor behind the increase in profit was a €5.3m exceptional cost concerning a 'director retirement settlement' in fiscal 2023 that did not re-occur last year.
The directors state that "trading activity during the period continued satisfactorily".
The directors state that they "are confident the company can continue to trade satisfactorily for the foreseeable future"
The report states that the "directors are satisfied with the results for the period and with the period-end financial position of the company".
The company last year paid out a dividend of €1m.
The €4.79m in pre-tax profits of last year follow pre-tax profits of €2.7m in the prior year.
The company recorded operating profits of €3.82m last year and benefited from more than a doubling in other finance income rising from €460,000 to €975,000.
The other finance income was made up of €282,000 in interest received on 'deposit account' and €693,000 in net interest income on pension scheme assets.
The company recorded post tax profits of €4.26m after recording a corporation tax charge of €531,000.
The net cash from operating activities last year totalled €5.37m. The firm had an outlay of €869,000 on the purchase of tangible fixed assets and this followed an outlay of €1m under that heading in fiscal 2023.
The directors shared aggregate pay of €1.15m last year which was made up of €903,000 in directors’ emoluments and €248,000 in post employment benefits.
The €1.15m in directors’ pay was down sharply on the €6.67m in the prior year that was mainly made up of the retirement settlement of €5.33m.
The profit last year takes account of non-cash depreciation costs of €1.7m.
Three directors remain on the board and they are Sinead McKenna, Liam T McKenna and Dermot B McKenna.
Numbers employed reduced from 240 to 231 as staff costs declined from €14.22m to €10.56m.
Cash funds increased from €36m to €39.54m during the year while accumulated profits totalled €123.28m. Shareholder funds totalled €124.59m.
Power City’s 11 stores are located in the eastern part of Ireland with its Dublin stores at Tallaght, Sallynoggin, Blanchardstown, Finglas, Coolock, Fonthill, Carrickmines, Swords, while there are also stores in Bray, Naas and Drogheda.
Reporting by Gordon Deegan
