Avoca invests €15m in Rathcoole outlet

Avoca is to invest €15 million in a new shop and cafe complex to open in Rathcoole, Co Dublin.

The development will entail just under 40,000 sq ft on three floors. Up to 100 people will be employed, with the shop and cafes open seven days a week.

The quality clothing and food group is to locate a shop on the ground floor, two cafes on the first floor, and will offer offices for rent on the top floor. Work on the building is to begin next week and the shop and cafes are scheduled to open in October 2006.

"We had been looking to do another decent-sized shop outside Dublin and it took some years to find the right location," said Simon Pratt, one of the five directors who run the family business. It already owns six stores.

The new development is on the Naas Road, the main Dublin-Cork and Dublin-Limerick route, as well as being close to Newbridge, Naas and Citywest.

"We wanted a decent shop but we didn't want to be paying rent into perpetuity. We were keen as a family business to have something we would own outright, so it is a property play as well."

Mr Pratt is director with responsibility for retail and the financials. Sister Amanda Pratt is involved in clothes design and brother Ivan is involved in overseeing the manufacturing and sale of clothing. Father Donald runs the plant nursery at Kilmacanogue, Co Wicklow, and mother Hilary oversees the mill at Avoca.

The group made an after-tax profit of €765,000 on turnover net of VAT of €33.2 million in the year to end January 2005, according to accounts just filed.

The clothing design and manufacturing company, Avoca Handweavers Ltd, saw its after-tax profit go to €139,542 from €40,912. Avoca Handweavers Shops Ltd saw its after-tax profit climb to €626,216 from €419,762.

Mr Pratt said the group's two fashion brands, Avoca Anthology and Renaissance, which were launched two years ago, were now selling from 300 independent retailers around the UK. He said clothing sales were doing well once again this year, when sales would be up 25 per cent.

The group had its properties valued for the first time during the year, adding €6.96 million to equity shareholders' funds, which ended the year at €16.8 million.

No dividends were paid during the year. Directors' emoluments for the two companies were €1.34 million. The group also has an outlet in in Maryland in the US, which opened in 1990.

"It does fine, not setting the world on fire but perfectly good in its own right," said Mr Pratt.

Avoca Handweavers employed an average of 60 people during the year to end January 2005, compared to 71 the previous year. Staff costs were €2.3 million compared to €2.26 million the previous year.

The shop company employed about 300 staff, many working on a part-time basis.

Mr Pratt said the Avoca mix of food and clothes was constantly evolving and there was potential for new ideas in the Rathcoole outlet.