Sales up at Des Kelly Carpets, but profits flat

Profits were flat last year at home furnishing group, Des Kelly Carpets, despite a near 12 per cent increase in sales, the latest figures show.

Recently filed accounts for Des Kelly Carpets Ltd show that sales grew by almost 12 per cent to €8 million from €7.2 million in the 12 months to April 30th, 2005. Operating profits for the year came in at €1.2 million, as against €1.25 million in 2004.

Des Kelly Carpets' 2004 bottom line was boosted by a sale of assets, which earned the company €1.38 million. This lifted profits before tax to €2.35 million that year.

Its pretax surplus in 2005 came to €909,000. However, stripping out the once-off gain from the asset sale, profits for 2004 would have stood at €970,000, just over €60,000 ahead of the 2005 figure.

After tax, the company's profit for 2005 was €665,800, which brought the profit and loss account to close to €5 million.

Shareholders' funds on April 30th, 2005 stood at €7.2 million, compared with €6.5 million 12 months earlier. The profit for the year was added to reserves and carried forward. The directors did not recommend at dividend.

The balance sheet at end-April 2005 was strong. The company had just over €1.1 million in cash, compared with €1.7 million 12 months earlier. Stocks and debtors were both up, at €2.8 million and €683,000 respectively. Total assets came to €15 million, compared with €13 million in 2004.

Net debt increased to €8.2 million on April 30th, 2005, from €7.2 million on May 1st, 2004.

This was largely down to an increase in the amount due for repayment after more than one year - to €7.6 million from €6.4 million. Debt due within a year actually fell to €6.5 million from €7.5 million.

Its creditors included €641,300 due to a related company based in Sallynoggin, Co Dublin.

Des Kelly Carpets increased the size of its payroll during the year to 134 from 112. This left it with a wages bill of €4.5 million, compared with €3.7 million in 2004. Directors' pay remained level at €305,683.

The company names Des Kelly and Yolanda Kelly as its directors. The notes to the accounts point out that Mr Kelly, its managing director, is the company's majority shareholder.