Penneys’ strong trading performance delivers revenues of €744m as firm plans continued investment in stores

The firm that operates the Penneys chain here last year recorded daily average pre-tax profits of more than €1.13m.

New accounts lodged by Primark Ltd show the company recorded a 5pc increase in pre-tax profits to €416.6m in the 52 weeks to the end of September 16 last.

The accounts show that revenues from Penneys Irish retail revenues last year increased by €51.5m, or 7pc, rising from €693.07m to €744.48m.

The €744.48m in revenues for the 52 weeks work out at average weekly revenues of €14.3m for the Irish network of Penneys stores.

The directors state that “Irish store trading performance was strong in the current year, with higher footfall in stores being reflected through increased sales”.

They say the opening of the Tallaght store at the end of the prior year also contributed to increased sales, along with newly expanded stores in Dundrum, Clonmel, Co Tipperary, and Galway.

The firm recorded operating profits of €380.99m and net finance income of €35.2m contributed to the pre-tax profits of €416.63m.

The company recorded a post-tax profit of €376.08m after incurring a corporation tax charge of €40.54m.

The directors say they intend to spend over €250m on the Irish market over the coming years, including the creation of 1,000 additional jobs. They plan to increase their selling space in Ireland by an estimated 20pc. Just last week, they opened a new store in Bray, Co Wicklow.

“This investment reinforces the company’s long-term commitment to Ireland, high-street retail and local communities across the country,” the accounts say.

The directors state that other investments in its Irish business include a planned €60m investment in its ­Patrick Street store in Cork; a €20m investment in the Eyre Square store in Galway and a €10m investment in a full refurbishment of the company’s flagship Mary Street in Dublin.

The overall revenues for Primark Ltd last year increased by €745m, or 23.5pc, from €3.174bn to €3.9bn.

The bulk of revenues were made up of inter-company supplies of ­inventory at €2.39bn, the Irish retail revenues of €744.48m and revenues of Primark Way franchise income of €784.58m. The profit last year takes account of non-cash depreciation costs of €79.32m and non-cash amortisation costs of €36.84m.

Numbers employed increased by 581 from 6,483 to 7,064. Staff costs increased from €252.46m to €300.65m.

Directors’ pay last year totalled €4.7m while directors also received €1.56m under long-term incentive plans. Accumulated profits stood at €1.64bn.

Reporting on:independent.ie