Clerys increases profit by 12.3% on strong sales

RETAILER CLERYS increased its profits by 12.3 per cent last year to €1.55 million while its sales rose by 5.5 per cent to €76.9 million, according to figures released yesterday.

The retailer said the improved performance was due to strong sales from its remodelled ground floor operation at its flagship O'Connell Street department store. In addition, its Guineys subsidiary on Talbot Street made a "positive contribution", while its home furnishings outlets in Leopardstown, Blanchardstown and Naas made a "significant" contribution to the group.

Chief executive PJ Timmins said fashion items, accessories and cosmetics had performed well but there was a downturn in furniture and carpet sales. "There's a correction going on in the housing market at the moment and those markets wouldn't be as buoyant as they were," Mr Timmins said.

Clery Co (1941) plc paid a dividend of €600,000 last year on ordinary shares and €10,400 on preference shares.

The retailer has 95 shareholders, most of them related to the late founders, Mary and Denis Guiney.

The accounts show that its occupancy costs - rates, rents, repairs and insurance - rose by 7.7 per cent to €6 million. The average number of employees rose to 290 from 274 although its total staff costs declined by €17,000 to €8.66 million.

Directors' remuneration rose to €620,021 from €436,010 a year earlier. Clerys' pension scheme showed a deficit of €766,000 at the end of January 2008.

On the property front, Clerys is examining the possibility of trebling its retail space in O'Connell Street, having acquired neighbouring buildings in recent years. It currently operates 120,000 sq ft of retail space there.

"We're still working up concepts," Mr Timmins said. "Our vision here will be to make Clerys the premium retail destination in Dublin city centre."

It is also planning to lodge an application with Dublin City Council this year to redevelop its Guineys store on Talbot Street. Again, it hopes to roughly treble the shop area while also developing offices and apartments.

"We are still evaluating what the mix will be," Mr Timmins said.

In its directors' report, Clerys expressed concern at the impact infrastructure projects in the area - including a new Metro and the Luas extension - could have on its business. "The board is concerned about the scale of disruption planned by a multiplicity of agencies and is making every effort, through representative bodies, to minimise the potential disruption."

Mr Timmins said he believed Dublin City Council was making a "genuine effort" to co-ordinate these works.

Clerys' accounts note that an €18.77 million loan with Bank of Ireland has been refinanced and is now due for repayment in April 2010.