Pretax profits at InterSport Elverys retail chain jump 33%

Pretax profits at the InterSport Elverys sports retail chain last year increased by 33 per cent to €8.17 million.

Accounts show that, in spite of Covid-19 restrictions for the first five months of 2021, its parent firm Staunton Sports Ltd’s revenues increased by €9.95 million or 11.6 per cent, from €85.67 million to €95.62 million last year.

The surge in pretax profits last year continued the retailer’s strong performance during Covid-19 where during the first pandemic-hit year in 2020 pretax profits increased almost threefold to €6.12 million.

The brand operates 46 stores in Ireland and online at elverys.ie and the directors state that the trading performance in 2021 “remained strong”.

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The company’s business was affected by Covid-19 restrictions for 10 months of 2020 and last year for five months.

In a note with the accounts, the directors say that, given the disruption to trade by Covid-19, “the directors are satisfied with the trading performance”.

The directors do not recommend the payment of a dividend for 2021 nor do they envisage paying a dividend in the coming years.

They say this is due to planned substantial capital expenditure in updating and automating the warehouse systems and continued investment in freehold properties and the group’s shop portfolio.

The note states that in common with all companies operating in Ireland in the sector, Staunton Sports is facing challenges arising from Covid 19, other online websites, supply chain disruption and rising energy costs. “However, the directors are of the opinion that the company is well-positioned to meet these challenges.”

On the group’s 2022 performance, the directors say that “online continues to perform strongly albeit trading down versus the first half of 2021 year when the stores were closed”.

The group recorded operating profits of €8.3 million and this takes into account other operating income of €1.74 million and this followed €2 million received under the same heading in 2020.

Numbers employed rose by 32 from 496 to 528 with staff costs increasing from €10.69 million to €11.3 million.

Staunton Sports last year recorded post-tax profits of €7.1 million after paying corporation tax of €1.07 million.

At the end of December last, the company’s shareholder funds totalled €21.65 million while the firm’s cash funds declined from €8.8 million to €7.7 million.

The company’s 2021 profits take account of non-cash depreciation costs of €1.7 million.