Arnotts' pre-tax profit rises 20.2% to €14.2m

Arnotts, the department stores group, has posted a 20.2 per cent increase in pre-tax profit to €14.2 million (£11.2 million) in the year ended January 31st, 2000. The better-than-expected results show an 18 per cent profits rise in the first half with an acceleration in growth in the second six months.

Sales increased by 15.6 per cent to €151.3 million. Chairman Mr Tom Toner, who is to retire at the annual general meeting, said sales density, measured in sales per square foot "surpassed that achieved prior to the enlargement of the Henry Street store in 1997".

Refurbishment of the Henry Street premises continued. This included the Euro Cafe, Ladies Fashion balcony and River Island. Work has started on the lower ground floor of the Victorian building and the Grafton Street store is to be refurbished in conjunction with River Island. Reflecting real growth, adjusted earnings per share rose by 25.7 per cent to 59.2 cents. A final dividend of 16.51 cents has been declared, making a total of 23.49 cents, an increase of 19.4 per cent. A revaluation of the group's properties threw up a surplus of €33.4 million, an increase of 39.8 per cent. The net asset backing for the shares is now 837 cents compared with the last quoted share price of 610 cents. Mr Toner said the branches in Grafton Street and Stillorgan and Boyers in North Earl Street, had higher sales and profits. Brink's Allied, the security company, "continues to make progress", said the chairman.

Arnotts is continuing to devote resources to developing its Internet business. Its site, he said, was receiving many visits and was being used to sell gift merchandise and gift tokens. This is to be expanded.

Mr Toner is to be succeeded as chairman by Mr Michael O'Connor, deputy chairman. Mr Brian Davy will succeed Mr O'Connor as deputy chairman. Mr Andrew Knowles is also to retire as secretary and director. He will be succeeded as secretary by Mr Paul Donnelly, financial controller.