7 days ago
- Business
- Irish Independent
‘Decisive actions' push profits at Kilkenny retail firm to €504,000
The Kilkenny Group, whose chairperson is Marian O'Gorman, made a €504,000 operating profit in the 12 months to the end of January 2024, compared to an operating loss of €866,000 the previous year.
The company operates close to 20 outlets around the country, including its flagship store on Dublin's Nassau Street.
The family-owned firm said that it had been operating in an 'environment of economic volatility' and faced headwinds that were beyond its control.
It is also keeping an eye on the potential impact of tariffs on its cost structure and taking steps to mitigate those risks.
The company employs more than 200 people, and its chief executive is Evelyn Moynihan.
Despite the operating profit generated during the 2024 financial year, turnover declined to €31.4m from €33.1m.
'The ongoing global cost of living crisis added pressures on our cost structures posing additional challenges to the performance of the business,' the directors noted in accounts just filed for the business.
They noted that the company has returned to profitability and predicts 'robust' cash flow projections up to July next year.
'This improvement reflects the positive impact of strategic initiatives and decisive actions taken by management, including operational restructuring, and proactive cost-saving strategies, margin-enhancing activities and the successful introduction of new brands and new own-brand ranges into the portfolio,' they added.
'Despite ongoing challenges in the broader economic environment, the directors remain confident in the group's ability to continue as a going concern.
'We have taken decisive steps to restructure operations, enhance cost efficiency, and implement innovative initiatives aimed at driving margin improvement.'
They said the company also successfully restructured its debt last month, giving it improved financial flexibility and meaning the firm can meet its debt obligations as they fall due. A loan facility of €2.48m, which was due to expire this month, was refinanced in July.
At the end of January 2024, the firm also had €2.4m in warehoused debt under a government scheme introduced during the Covid pandemic.
That money was repayable from May 2024 in 120 monthly instalments, with a 0pc interest rate.
'Looking ahead, the company will continue to adapt to evolving consumer trends and market conditions,' the directors said.
'Key focus areas include digital transformation, customer engagement, product innovation, employee training and engagement, operational efficiency and sustainability initiatives. These measures reflect our commitment to long-term sustainability and shareholder value.'
The company's pre-tax profit in the 2024 financial year was €171,000, compared to €1.1m in 2023.
The 2023 figure reflected a €1.9m impairment reversal, however.
A row between the family behind the chain erupted in 2016 when a decision was taken by Ms O'Gorman to terminate the employment of her son, Greg, at the group. He took legal action to prevent his dismissal. The case was settled the following year.
Ms O'Gorman's four children, Greg, Michelle, Melissa and Christopher, each hold shares, alongside their mother in the company behind the business.
