Retailer's Irish arm posts €17.2m loss citing exceptional items
Arcadia group:The Irish arm of the clothing retailer behind Burton, Dorothy Perkins, Evans and Top Shop has posted a £14.1 million (€17.2 million) loss after exceptional items.
Arcadia Group Multiples (Ireland) Limited, part of the Sir Philip Green-owned Arcadia retailing group has filed accounts for the year ended August 27th, 2011.
During the year, the company incurred an exceptional charge of £14 million, including £13.5 million to provide for future lease obligations on the company’s loss-making stores.
The company says it has reviewed loss-making stores to assess whether their future cash flows will meet their rental obligations. Its accounts include “a provision for onerous leases on loss-making stores” of £13.4 million to provide for any shortfalls, it says.
Turnover at the company declined by 13 per cent to €51 million in the 12-month period in what directors described as “difficult trading conditions” with “markedly lower margins” on all brands.
Sales at the group’s Irish operations in the year to August 2010 were €59 million with profits of €1.8 million. Despite market conditions, the company’s board remains “optimistic” that “continuing investment in stores and freshness of product” will enable it to grow sales.
– JOANNE HUNT