Profits at sports retailer Elverys dipped more than 8 per cent in 2024 as it closed three stores, its latest set of accounts show.
The financial statement also highlights the potential risks to the business of trade tensions between the United States and the European Union.
Staunton Sports, which trades under the brand name Intersport Elverys, made a profit of €5.7 million after tax and depreciation, down from €6.2 million the year before.
The business operated 44 stores across the country in the year, down from 47 in 2023. It also has a strong online presence, positioning it as one of Ireland’s largest sports retailers.
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Trading for the period to the end of December 2024 “remained very strong”, with turnover of €126.6 million.
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This was down by 2 per cent compared with the “exceptional 2023 performance” during which it benefited from a bounce in sales due to the Rugby World Cup in France.
The directors said they were “very satisfied” with the performance, but did not recommend a dividend payment. The company’s gross margin “remained stable” at 42.8 per cent, supported by “careful supply chain management and disciplined pricing”.
Inflationary cost pressures were partially offset by “operational efficiencies” and increased use of renewable energy sources.
Key factors affecting the company’s performance “continue to include” inflation, foreign exchange movements, labour and energy costs, and competitive pressure from online retail platforms.
At the end of the financial year, the company had assets of €65.6 million, down from €55.9 million 12 months earlier. Its liabilities rose from €22.9 million to €26.8 million.
The company said it “remains financially robust”, with net assets increasing by €5.7 million to €38.8 million. It said it enjoyed “significant liquidity” through cash reserves and banking facilities.
Capital expenditure during the year focused on upgrading warehouse automation, digital systems and the retail store network, despite the reduction in its footprint.
“The directors are conscious of ongoing global uncertainties, particularly supply chain volatility and the potential for trade tension between the United States and the EU, and continue to monitor these risks closely,” a note in the accounts said.
The directors said they were planning for “continued capital expenditure” in enhancing the warehouse automation system, which has since been completed.
“Focus remains on progression of the sustainability programme, with preparation under way for the commissioning of a wood pellet and silo at the Castlebar distribution centre,” they said.
The directors said planned to continue investing in online infrastructure sustainability initiatives and a store modernisation programme. “In 2025, capital investment will prioritise further automation customer experience enhancements and energy efficient operations,” they said.
“While inflation and cost of living pressures may temper short term consumer spending, the directors remain confident in the long term, strength of the brand and its market position.”
The company employed an average of 586 people during the year, an increase of 15 in its headcount. Staff costs amounted to €17.6 million, up from €16.4 million. The accounts were signed off on by the board on October 10th last.
