Pre-tax profits at the Irish arm of clothing retailer River Island increased by 65 per cent last year to €7.29 million.
New accounts show that River Island Clothing Company (Ireland) Ltd recorded pre-tax profits of €7.29 million despite revenues declining by nine per cent from €51.9 million for the prior 53 weeks to €47.23 million for the 52 weeks of 2023.
The retailer operated 23 stores in the State last year and recorded earnings before interest tax depreciation and amortisation (EBITDA) of €7.7 million in 2023 - which was up 45 per cent on EBIDTA figure of €5.3 million for 2022.
The number of those employed full-time and part-time at the business declined from 545 to 522 last year.
The workforce was made up of 149 full-time and 373 part-time employees, and staff costs last year increased marginally from €8.4 million to €8.46 million.
The directors state that "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 said 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 paid out €10.33 million in lease payments for land and buildings last year.
The business’s profits were boosted by an onerous lease credit of €1.09 million and a €357,000 impairment of stock reversal.
River Island recorded a post-tax profit of €6.24 million after incurring a corporation tax charge of €1.04 million.
At the end of December last, the company’s shareholder funds totalled €18.45 million, which included accumulated profits of €13.4 million. The company’s cash funds decreased from €19.17 million to €12 million.
