Blarney Woollen Mills sustains 40% hit in revenues due to Covid-19

Revenues at the Blarney Woollen Mills Group declined by 40 per cent in the past year due to the Covid-19 pandemic.

According to new financial statements for the retail, hotel and knitwear group, unaudited management accounts for the 12 months to the end of January 2021 show that operating profits reduced by 25 per cent as a result of the pandemic.

The directors report attached to the group’s 2020 accounts states that “there is no indication of a long lasting impact on the liquidity of the group” from the pandemic.

This assumption is based on the current strength of the business’s balance sheet, a number of mitigation measures, and the support of the group’s bankers.

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The directors state that the group’s liquidity position has remained positive during the pandemic through a combination of cost saving measures, the availing of Government’s debt warehousing scheme for its taxation payables and the support schemes for employment protection.

They state that the group has a solid capital structure in place and sufficient levels of cash to support the continued operation of the business.

Profit decline

The accounts show that before Covid, the group’s pre-tax profits declined by 28 per cent to €3.16 million in the 12 months to the end of January 2020 while its revenues rose by 4 per cent to €43.27 million.

Revenues comprised €29.5 million in retail sales, €10 million in hotel and restaurant income, €3.1 million in manufacturing knitwear, and €442,629 in concession income.

Staff costs rose from €10.46 million to €11.13 million, while 488 people employed by the group. Directors’ pay totalled €656,467

Key management personnel were last year paid €852,567 made up of €791,667 in salaries and pension contributions of €60,900.

At the end of January 2020, the group’s shareholder funds stood at €16 million. while its cash funds reduced from €5.7 million to €2.6 million.