Adult sex toy and lingerie retailer, Ann Summers last year sustained a €2.51 million loan impairment charge arising from expected reduced cash flows from its Irish operation in the future.
Ann Summers (UK) Holdings Ltd recorded the €2.51 million loan impairment to its Irish business as sales as its Irish retail arm here plummeted by 45 per cent from €3.34 million to €1.82 million last year.
Last year, Ann Summers (Ireland) Ltd reduced the number of shops it operates here from three to two and its reduced costs contributed to pre-tax losses halving from €341,894 to €170,088 in the 12 months to the end of June 29th last.
In a statement accompanying the Irish unit’s accounts ceo, Maria Hollins states that the company has “made strategic decisions to position the business for future stability”.
Arising from the closure of one of the retailer’s three Irish outlets during the year, numbers employed reduced from 37 to 23.
Separate accounts filed by UK parent, Ann Summers (UK) Holdings Ltd show that it last year incurred the €2.51 million impairment of loan charge concerning a change in the company’s structuring in Ireland “reducing the expected cashflows to be returned in the future”.
In her statement attached to the Ann Summers Ireland (Retail) Ltd accounts, Ms Hollins states that the financial year 2023/24 “has been a challenging yet transformative year for Ann Summers Ireland (Retail) Ltd".
Ms Hollins states that “trade was notably impacted by the ongoing economic challenges, including inflation and the cost of living crisis, coupled with a tumultuous global political landscape which affected consumer confidence and discretionary spending".
Ms Hollins states that the company’s financial performance reflects the challenging environment as earnings before tax, depreciation and amortisation (EBITDA) losses reduced from €300,000 to €200,000.
Ms Hollins states that “our decisive actions to control costs and improve our gross margin have ensured that despite turnover decreasing our EBITDA has improved by 50pc”.
Ms Hollins states that “looking ahead, we are committing to continuing our investment in growth and transformation across the wider Ann Summers business”.
She stated “we have a clear strategy in place to navigate the current economic challenges. Our focus remains on enhancing our in-store experiences and maintaining a disciplined approach to cost management.”
The reduction in numbers employed at the Irish operation last year contributed to staff costs declining from €625,315 to €457,695.
Operating lease rentals reduced sharply from €831,093 to €284,018 as non-cash depreciation costs declined from €116,610 to €59,093.
The loss last year resulted in a shareholders’ deficit increasing from €2.79 million to €2.96 million.
The separate accounts for the UK parent arm, Ann Summers (UK) Holdings Ltd show that the €2.51 million loan impairment arising from its Irish operation contributed to pre-tax losses of €15.7 million.
Group revenues slumped by 11 per cent from €125.4 million to €111.6 million as the number of UK stores decreased from 85 to 80.
