Home entertainment retailer Golden Discs, which recently started rolling out concessions stores in 80 Tesco outlets nationwide under a new agreement with the supermarket giant, fell into the red in the 12 months to the end of June 2015.
The company reported a €466,158 pretax loss, compared with a €30,885 profit a year earlier.
Golden Discs, which was established in 1962, currently has 14 stores and employs more than 150 people.
The company agreed a three-year partnership with Tesco late last year that will make the brand the Republic’s largest home-entertainment retailer. Under the deal, Golden Discs at Tesco concessions will operate as standalone units within the supermarket stores, selling DVDs, music and games.
Abridged accounts for Golden Disc Group Limited show it made a gross profit of €3.3 million last year from continuing operations, compared with a €3.78 million profit in the 12 months to the end of June 2014.
Distribution costs fell from €1.94 million to €1.76 million over the year, while administrative expenses rose to €1.98 million, compared with €1.81 million.
No breakdown of turnover was included in the accounts. Turnover rose 43 per cent from €8.4 million to €12 million in the year to the end of June 2014, according to previously published figures.
“The loss is attributed to substantial drop in turnover and resultant group margin due to some store closures. The business has significantly improved since then with growth in sales, margin and a return to profitability,” managing director Stephen FitzGerald told The Irish Times .
“The company also opened new stores last year and signed a deal to open in 80 Tesco stores which has been a great success. We are curently working on launching a new webstore and are looking to opening further stores during 2017,” he added.
Golden Discs said it employed an average monthly number of 77 employees in the period under review, with employment-related costs, including wages and salaries, amounting to €1.88 million, down from €1.95 million a year earlier.
Directors’ emoluments totalled €176,000, up from €117,625.