Golden Discs expects strong fourth quarter due to pent-up demand

Pre-tax profits at the group fell 39% from €200,963 to €122,429 in the 12 months to the end of December 2019

The Golden Discs store in Dundrum, Dublin

The Golden Discs store in Dundrum, Dublin

 

The Golden Disc group is anticipating a strong fourth quarter this year due to pent-up demand after the Covid-19-enforced closure of its “bricks and mortar” stores.

The company anticipates a strong fourth quarter trading period and into 2022 “as pent-up demand and associated spend are satisfied with prolific music and film release schedules”.

In its latest accounts the the group said it thinks the initial trading period after Covid-19 restrictions are eased “will be uncertain as consumers readjust and trading is broadly anticipated to take some time to resume to pre-Covid trading levels”.

The accounts show that pre-tax profits at Golden Disc Group Ltd declined by 39 per cent from €200,963 to €122,429 in the 12 months to the end of December 2019.

The company recorded the drop in profits as revenues remained flat at €13.2 million.

The accounts note that during the Covid-19 lockdown the company has continued to trade successfully through its website.

The note says the directors have sought to implement operational cost-reductions and utilise Government schemes to support the business during the pandemic.

The pandemic struck last year after a period of expansion for Golden Disc in 2019 when numbers employed increased from 107 to 138 as the business opened new stores in Drogheda, Tralee, Sligo and Dublin in the final quarter of 2019. However, the company closed an outlet on Dublin’s Henry Street earlier in the year which offset some of the growth.

The profit takes account of non-cash depreciation costs of €142,181. Staff costs in 2019 total €2.63 million. Directors’ pay remained static at €228,000, made up of €160,000 in pay and €78,000 in pension contributions.

Accumulated profits at the company at the end of December, 2019 totalled €484,812. The company has cash funds of €2.34 million.