Carphone Warehouse pares losses during 2010

CARPHONE Warehouse narrowed its losses in Ireland in the 12 months to the end of April 2010 as it stripped back on costs.

The company made a pretax loss of almost €3.4 million in the period, compared to a loss of €9.5 million in the previous 12- month period, accounts just filed at the Companies Office show.

Turnover slipped 3.7 per cent to €107.3 million during the period.

The mobile phone and laptop retailer said its net liabilities of €16.5 million and its accumulated losses of €16.8 million reflected “a decline in profitability and poor trading conditions” during the period.

“The parent company has indicated its intention to continue to provide the necessary financial support and other resources to the company for the foreseeable future and for a period of at least 12 months from the date of approval of the financial statements,” a note to the accounts states.

Growth in the smartphone market has been offset by the generally poor environment for consumer spending.

Carphone Warehouse’s chief executive in Ireland, Stephen Mackarel, has been critical of high retail rents in the Irish market. The company has withheld rent and diverted the payments into escrow accounts in two instances where it was seeking to negotiate lower rents with landlords.

The company’s total net operating expenses fell 11.7 per cent to €28.7 million in the period.

Total remuneration for directors came in at just over €300,000, up slightly, while the company employed an average of 435 people, down from 442 employees in the previous period.