Pre-tax profits at family owned retailer, Michael Guiney last year increased by 20 per cent to €2.26 million.
New consolidated accounts for the Michael Guiney group show that the jump in profits followed revenues rising by 19 per cent from €18.93 million to €22.55 million in the 12 months to the end of January 2022.
The first Michael Guiney store opened its doors in 1971 on Thomas Street in Dublin and in the year under review the group celebrated 50 years in business.
Today, the retail brand - which sells household items and clothing - has in total 12 outlets in Dublin, Cork, Tralee, Waterford, Limerick, Castlebar, Clonmel, Mullingar, Dundalk, Belfast and Kilkenny.
The firm last year paid out a dividend of €150,000 to shareholders and this followed a dividend payout of €80,000 in the prior year.
Numbers employed increased from 164 to 179 and the business did not avail of any Covid-19 supports here last year but did receive Covid-19 UK Furlough payments of €295,953.
Staff costs last year totalled €4.23 million while directors’ pay increased marginally from €226,600 to €230,377.
The bulk of the group’s sales are recorded in Ireland at €21.7 million - or 96 per cent - with sales of €799,462 in the UK.
The group recorded post tax profits of €1.87 million after paying corporation tax of €385,035. The profit last year takes account of non-cash depreciation costs of €1.14 million and lease costs of €519,500.
Covid-19 impacted the business during the year under review and addressing the firm’s going concern status, the directors state that “the group has a strong balance sheet including strong cash resources at year-end and not as exposed as some competitors as assets are largely owned not rented.”
At the end of January 2022, the group had accumulated profits of €20.92 million while its cash funds increased from €2.63 million to €3.29 million.
On the main risks and uncertainties facing the company, the directors state they are the rising costs to running a business including cost of goods, electricity and gas, fees, pressure to increase wages.
They add that another risk is consumer demand falling as people have less discretionary income due to rising costs in the economy while “staff recruitment is extremely difficult in this environment”.
The accounts disclose that in 2020, Michael Guiney loaned Michael Guiney Limited €700,000 and at the end of last January, €365,000 was outstanding to Mr Guiney for this transaction.