Pre-tax profits at the InterSport Elverys sports retail chain last year increased by 33 per cent to €8.17 million.
New accounts show that in spite of Covid-19 restrictions for the first five months of 2021, Staunton Sports Ltd’s revenues last year increased by 11.6 per cent to €95.62 million.
The surge in pre-tax profits last year continued the retailer’s strong performance during Covid-19 where during the first pandemic hit year in 2020 pre-tax profits increased almost three-fold to €6.12 million.
The brand operates 46 stores here and online at elverys.ie and the directors state that the trading performance in 2021 “remained strong”.
The firm’s business was impacted by Covid-19 restrictions for 10 months of 2020 and last year for five months.
The directors’ report states that “given the continued disruption to trade in the first five months of the year and overall uncertainty arising from Covid 19, the directors are satisfied with the trading performance".
The directors did not recommend the payment of a dividend for 2021 nor do they envisage paying a dividend in the coming years.
They say that this is due to planned substantial capital expenditure in updating and automating the warehouse systems and continued investment in freehold properties and the group’s shop portfolio.
The directors state that in common with all companies operating in Ireland in the sector, Staunton Sports Ltd is facing challenges arising from Covid 19, other online websites, supply chain disruption and rising energy costs.
The report stated: “However, the directors are of the opinion that the company is well positioned to meet these challenges.”
On the group’s 2022 performance, the directors state that “online continues to perform strongly albeit trading down versus the first half of 2021 year when the stores were closed”.
They add that global supply issues continue to cause disruption to deliveries from many of the company’s key suppliers and this together with increased energy costs, Ukraine conflict and cost of living in general, may have an adverse effect on trade whilst these variables continue.
The group recorded operating profits of €8.3 million and this takes into account other operating income of €1.74 million and this followed €2 million received under the same heading in 2020.
Numbers employed rose by 32 from 496 to 528 with staff costs increased from €10.69 million to €11.3 million.
The business last year paid consultancy fees of €250,000 to a related firm, Budget Sport Ltd where John Staunton, James Staunton, Marita Staunton and Helen Staunton each have a 25 per cent share.
Staunton Sports Ltd last year recorded post tax profits of €7.1 million after paying corporation tax of €1.07 million.
At the end of December last, the company’s shareholder funds totalled €21.65 million while the firm’s cash funds declined from €8.8 million to €7.7 million.
Accumulated profits totalled €15.58 million.
