Pretax profits at River Island halved for 2009

PRETAX PROFITS at the Irish arm of clothing retailer River Island more than halved last year to €11.5 million, new figures show.

In accounts just filed with the Companies Office, they show that the turnover at UK-owned River Island Clothing Co (Ireland) to the end of last December fell 11.6 per cent, from €103 million to €91 million. Turnover arose solely from the sales of clothing in Ireland.

At the end of last year, River Island operated 22 stores across Ireland. The directors state that “turnover and margin in the first part of 2010 is satisfactory”.

At the end of December 2009, its accumulated profits stood at €88.4 million. The directors state that they will recommend the payment of a dividend this year – no dividend was paid in 2009.

The accounts show that River Island’s pretax profits fell by 51 per cent from €23.5 million to €11.5 million. The chief factor behind the significant drop was the cost of sales remaining static with 2008 levels, in spite of the drop in turnover. Profits however were boosted by €172,690 in interest payments received.

River Island paid €11.9 million in payments under operating leases for land and buildings last year, compared to €8.9 million in 2008.

Staff costs of €14.6 million were recorded last year, an increase of 3 per cent on the €14.1 million costs in 2008. River Island employed 1,278 people last year, with almost 1,000 of the jobs part-time.

The accounts also show that directors’ emoluments last year rose from €174,977 to €210,256.