Londis’ profits increase by 31 per cent to €2.2 million

Irish wholesale and retailing group ADM Londis recorded an operating profit of €2.2 million last year, up 31 per cent on the prior year's performance of €1.6 million.

This is despite a 7.6 per cent decline in revenue from €195 million in 2013 to €180 million for the year ended 31 December 2014.

The retail chain, which has more than 200 Londis-branded shops in Ireland, said like-for-like turnover decreased by 3 per cent from €169 million in 2013 to €164 million last year.

Following exceptional costs of €2.3 million, the company made a loss of €340,760 after tax. This compares to an after tax profit of €1.35 million the previous year.

The exceptional costs included legal, professional and organisational costs relating to the proposed sale of the company to BWG Foods. ADM Londis accepted a €23 million cash offer from BWG Foods earlier this year.

ADM Londis chief executive Stephen O’Riordan said group cash flow remained “exceptionally strong” last year leading to the repayment in full of a €6.2 million loan from existing reserves.

However, he said the Irish grocery retail market remained “very fragile”.

“Significant media spend and intense voucher activity by leading multiples and discounters continued to exert competitive pressure on local independent retailers.”

He said food retail in Ireland has changed dramatically and despite some encouraging signs of improving economic indicators, competition in the retail space continues unabated.

“Whilst on a standalone basis, ADM Londis has helped retailers to sustain and enhance margins, it is recognised that achieving greater scale is crucial to the group’s ability to bring ever more competitive pricing.”

Employees at the company, both within management and administration, decreased from 89 to 84. However, the payroll including salaries, wages and pension costs, increased to €4.7 million.

Shareholders’ funds decreased from €20.4 million in 2013 to €19.7 million last year. A dividend of 25 cent per Class A share was paid out during the year.