Profits halved at Dunnes Stores’ UK division

Dunnes Stores' overhead expenses rose significantly in the UK during the past year while interest receivable and revenues dropped, contributing to a sharp fall in pre-tax profits

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Pre-tax profits at the UK arm of Irish-owned Dunnes Stores fell by 53% during the past year to £12.3 million (EUR*15.3 million).

Returns filed by Dunnes Stores (Bangor) Ltd to the Companies House in the UK, reveal the group’s revenues dropped by 6.5% from £177.8 million to £166.3 million in its financial year which ended on 28 January 2012.

Records show Dunnes Stores’ overhead expenses rose from £43.4 million to £47.3 million and interest receivable fell from £5.1 million to £357,000; which helps account for the group’s steep decline in pre-tax profits.

Dunnes Stores’ UK gross margin also dropped marginally last year.

The firm’s net assets stood at £297.7 million, while its cash increased from £35.5 million to £42 million.

Currently, the company has 23 stores in Northern Ireland, six in England, and five stores in Scotland. In total, Dunnes Stores operates 155 stores, including 116 outlets in the Republic which employ 16,000 people. 

The Newry-registered firm’s accounts also show it paid dividends of £4.14 million last year to parent company, Dunnes Stores, Dublin (Henry Street). The previous year, the UK branch paid a dividend payout of £9.2 million. The directors of Dunnes Stores (Bangor) Ltd are listed as Francis Dunne and Margaret Heffernan.

The numbers employed by Dunnes Stores (Bangor) Ltd last year fell by 343 or 14% from 2,342 to 1,999 and staff costs were reduced marginally from £20.83m to £20m.

While the results provide an insight into Dunnes Stores’ UK performance, in the Republic of Ireland, Dunnes Stores is an unlimited company and is therefore not required to file annual results.

However Kantar Worldpanel data shows Dunnes Stores Ireland remains the country’s second largest grocery retailer yet its market share fell during the past year, declining from 23.3% to 22.4% at the end of October.

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