JD Sports paid out €18m dividend in year it received €1.3m in State supports

The main Irish unit of JD Sports paid out an interim dividend of €18 million during the same year it received Government Covid-19 grants of €1.3 million.

The 2020 accounts for John David Sports Fashion (Ireland) Ltd show the business recorded increased profit and revenue during the early phases of the pandemic.

The company operates 19 Irish retail outlets and the accounts show pretax profit increased by 39 per cent from €17.22 million to €23.97 million in the 12 months to the end of January 30th this year.

This followed revenue increasing by €25 million or 17 per cent from €142.2 million to €167.3 million.

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Confirmation of the €18 million dividend payout follows Tánaiste Leo Varadkar stating last week that companies that had availed of Covid-19 wage subsidy scheme payments and had recorded "substantial profits" and were in a position to pay "substantial dividends" should repay the supports.

The accounts do not disclose the nature of the State grants received last year.

However, figures published by Revenue show John David Sports Fashion (Ireland) Ltd availed of payments under the temporary wage subsidy scheme put in place during the first lockdown in March 2020.

Revenue’s records show the company did not avail of the employment wage subsidy scheme that was introduced in September last year.

The firm in 2020 recorded post-tax profits of €20.4 million after paying corporation tax of €3.49 million.

A spokesman for UK owned JD Sports plc declined to comment on Monday about the paying of the dividend and its Irish company receiving Irish Government grants during the same year.

The €18 million payout followed a dividend payout of €8 million in 2019. The company’s cash funds increased sharply from €28.8 million to €54.8 million while accumulated profits totalled €21.79 million at the end of January.

The profits take account of combined non-cash depreciation costs of €8.2 million. Numbers employed reduced from 424 to 204 ‘full time equivalents’ and staff costs reduced from €13 million to €9.8 million.