The directors of Lifestyle Sports expect the business to return to profit in the current year.
New accounts filed by Lifestyle Sports (Ireland) Ltd show the retailer’s pretax losses halved to €1.2 million in the 12 months to the end of September 28th.
Revenues at the business dipping slightly from €104.99 million to €104.18 million.
Still, in their report, the directors said that the business has recorded revenue growth since the end of last September.
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The company operates the Lifestyle Sports business through 38 bricks and mortar stores and online.
In their report, they state that “the company’s profitability continued with increased momentum post year end and for the quarter ended December 31st 2024, which includes the key Black Friday and Christmas trading period, the company reported a €1.2m or 23pc increase in Ebitda (Earnings before interest tax depreciation and amortisation).
They state that “this increase in cash profitability was a function of not just continuing cost savings but a welcome return to top line growth with ‘like for like’ revenue growth of 4.5 per cent”.
They further add that they note that “this growth in revenue was broad based”.
The directors note that “this performance, in what remains a challenging and competitive market, was validation of the company’s strategy based on premium omni channel retailing focused on the stylised athlete, benefiting from exclusive access to some of the most popular sports inspired brands in Ireland”.
“Based on this performance the company is expected to return to profitability in the year ended September 27th 2025”.
Lifestyle Sports is owned by the Co Wexford based Stafford Group and reflecting on the 2024 fiscal performance, the directors state that the results for the year “were encouraging”.
The increased cash profitability contributed to a €1.53m reduction in operating losses to €408,000.
Exceptional costs of €624,372 relating to store closure costs and restructuring costs contributed to the pretax loss of €1.23 million.
Numbers employed reduced from 408 to 383 as staff costs declined from €13.5 million to €13.45 million.
In a post balance sheet event, the directors said that the company participated in the successful refinancing of the Stafford Group with Bank of Ireland, to put in place five year facilities maturing in November 2029.
They added that having successfully paid down almost €7 million of bank debt over the preceding 12 months from a combination of asset disposals and tighter working capital management, the Stafford Group refinanced its total banking facilities of €22.7 million through a combination of term loans amounting to €19.2 million and overdraft facilities amounting to €3.5 million.
