Irish arm of Top Shop records €12.3m pretax loss after exceptional costs
Non-cash charges over loss-making stores contribute to loss despite revenue rising 3%
Numbers employed by the Irish arm of Top Shop/Top Man last year decreased from 362 to 353. Photograph: James Forde
The Irish arm of Top Shop/Top Man last year plunged into the red to record pretax losses of £10.5 million (€12.3 million).
New accounts filed by Top Shop/Top Man Ireland Ltd show that it recorded the loss in spite of revenue increasing by 3 per cent from £26.1 million to £26.9 million in the 53 weeks to the end of September 1st last year.
The company sustained the loss over a non-cash charge of £11.47 million in connection with the movement of a provision against the future leasing obligations of its loss-making stores and the impairment of goodwill and tangible assets.
The pretax losses followed a pretax profit of £2.95 million in 2017 – a negative swing of £13.4 million.
The non-cash charges are made up of £5.9 million in impairment of goodwill; a £3.7 million provision for the onerous leases on loss-making stores and £1.7 million on the impairment of tangible assets.
Numbers employed by the company last year decreased from 362 to 353 as staff costs reduced from £5.17 million to £5.12 million.
A connected company, Wallis Retail (Ireland) Ltd, last year recorded a 51.5 per cent decrease in pretax profits to £1.1 million.
This followed revenue decreasing by 4.5 per cent from £11.4 million to £10.96 million in the 53 weeks to the end of September 1st.
Numbers employed by the company last year increased to 184 and staff costs last year dipped £2.37 million.
Accounts for a third connected company, Miss Selfridge Retail (Ireland) Ltd show that last year it recorded a pretax loss of £258,000 and this followed pretax losses of £88,000.
Numbers employed by the company last year decreased from 108 to 80 and staff costs reduced from £1.29 million to £1.16 million.
The losses at the Irish arm of Top Shop came ahead of Lady Green’s UK Top Shop business hitting trouble this year and a rescue plan has prevented the business from entering administration.