Sale earns Morton's €2m

The owners of Morton's of Ranelagh, one of the best-known independent supermarkets in Dublin, booked a €2.49 million profit after the sale of the shop building to another company within their family group.

The Dublin 6 retailer made an operating profit of €32,735 in the year to the end of April 2004 after an operating loss in the previous year of €86,133.

Unlike other independently-owned supermarkets, which have franchised brand names, the shop has operated under the Morton's name since it opened for business in the 1930s. Accounts recently filed in the Companies Office reveal that the supermarket operator C Morton & Sons sold the landmark supermarket building on Dunville Avenue, Ranelagh, for €3.45 million to Dunville Property Holdings on June 12th, 2003. The market valuation was set by David Gill & Associates.

The €2.49 million profit on the transaction contributed to a retained profit of €2.52 million in the year to May 2004, up from a retained loss of €122,692 the previous year.

Company director Gary Morton said the property sale was carried out when the family owners of the supermarket were creating a group structure for the business.

The effect of the sale was to divide the retail element of the business from the property element, Mr Morton said. "There's no change in ownership. It's still 100 per cent family-owned."

C Morton & Sons and Dunville Property Holdings are subsidiaries of the Morton Investment Company Ltd, which has ultimate control over the business.

Its owners are Gary Morton, Iris Morton, Alan Morton and Joan Morton. They received no dividend in the year. While the C Morton & Sons accounts do not reveal a turnover figure for the company, it had a gross profit in the year ended April 2004 of €1.86 million up from €1.58 million a year earlier. Administrative expenses rose to €1.83 million in the year from €1.7 million in the previous period.

The retained profit carried forward at the end of April 2004 was €3.04 million, up from €528,798 a year earlier.

The company recently opened a second outlet at the Luas stop adjacent to its existing premises. Mr Morton said there were no current plans for further outlets.