Hampden to open more stores in Republic

More stores are to be opened in the Republic by the Hampden Group to complement its strong position in Northern Ireland's retail market.

At present, only five of its 32 Texas Homebase, Kwik-Fit, Allied Carpets and Reid Furniture outlets are in the Republic.

Chief executive, Mr David Russell, commenting on the group's third successive year of record turnover and profits, said sites were being actively sought in Dublin, Cork, Galway and Limerick for additional Texas Homebase outlets, following strong trading at the group's three DIY stores in Dublin. There may also be scope for growing the Reid Furniture activity from its present two outlets in Dublin as the fragmented Irish retail furnishing sector is ripe for new trading formats. At the same time, Mr Russell said the group was continuing to look at accelerating its Irish growth through further joint ventures and franchises or entry into the acquisition market.

With end-year net cash of £2.1 million, up nearly £800,000, the group is not short of resources to fund its Irish roll-out. But acquisitions could well be funded through share issues.

Calendar 1997 profits before exceptional items and tax rose 25 per cent to £2.29 million on turnover up 8.9 per cent at £45 million with stores in the Republic contributing around £12 million.

Significant sales gains were achieved by the flagship Texas Homebase chain, up 9.2 per cent in Northern Ireland and up 8.5 per cent in the Republic.

Allied Carpet sales rose 4.1 per cent and trading improved in the second half at the Kwik-Fit car exhausts and tyres outlets.

But Reid Furniture (Ireland), the new 50/50 joint venture owned with Reid Furniture of Scotland, suffered 'greater start-up problems than anticipated'.

Although the fall of the pound against sterling led to £230,000 currency translation losses, chairman, Mr Stratton Mills, says the retail exposure to the strong economy 'has been very beneficial for the group'.