Acquisitions raise gains at Eason

Profits rose by 15 per cent at bookseller and newsagent, Eason & Son, last year, with the performance boosted by acquisitions and an improved wholesale performance.

Pre-tax profits climbed from €11.9 to €13.7 million in the year to the end of January. This came as profits declined by €367,000 across existing operations and acquisitions contributed €2.2 million in new profits.

The profits were drawn from €380.5 million in sales, up from €372.3 million in the previous year. The growth in turnover was again mostly attributable to acquisitions, with sales from existing operations down by €824,000 at €371.5 million.

Eason operates close to 50 bookshops and newsagents in the Republic and the North, as well a a sizable Irish newspaper and magazine distribution business.

The firm, which has some 1,200 staff, closed its store in Dublin's ILAC Centre in May, but is due to open new outlets at Mahon Point in Cork and Dundrum in Dublin early next year.

The highlight in Eason's performance last year was the company's December acquisition of UK bookshop chain, British Bookshops and Stationers (BBS).

Eason paid €17.5 million for 49.9 per cent of the Sussex-based chain but has a put and call option over the remaining 50 per cent. This can can be exercised between March and August next year for about €23 million.

Eason drew €87.7 million in turnover from the UK last year, while sales rose by €6.7 million to €292.9 million in the Republic.

This came despite the Luas disruption caused to Eason's flagship store in Dublin's O'Connell Street and sluggish consumer spending.

The company, which has close to 200 shareholders, is paying a dividend of 10 cents per share for last year. This compares to a payout of 8.5 cents in 2003.