Brown Thomas profits rise by 17.5% to €24.1m

Pre-tax profits at Brown Thomas increased by 17.5 per cent to €24.1 million, a record for the company, in the 53 weeks to February 4th, 2007, according to new figures released by the retailer.

Gross transaction value - the overall cash flowing through the Brown Thomas Group, including its concession outlets - rose by 11.8 per cent from €280.6 million to €313.9 million during the period.

Excluding concessions, turnover rose by 9 per cent to €250.8 million, which includes a profit of €21.4 million made from the concession outlets, according to the results for Carlow Investment Company, the holding company behind the Brown Thomas group. Gross profits rose by 12.7 per cent to €117.7 million.

Carlow Investment Company's pre-tax profit for its previous accounting period - the 52 weeks to January 29th, 2006 - was adjusted by €1.9 million for redundancy payments and the write-off of assets. Excluding this payment, pre-tax profits would have risen by 29.6 per cent in the 2007 financial year.

Staff numbers increased to 1,058 from 978 during the most recent accounting period; Brown Thomas's salaries bill rose to €36.6 million from €34 million.

The group said it faced risks and uncertainties typical of the retail sector but these were mitigated by its historically strong financial performance and long-standing reputation.

The results for the year to February 4th, 2007 cover the four Brown Thomas stores - in Dublin, Cork, Limerick and Galway - and the three BT2 stores in Dublin. They also include the figures for the fashion retail chain A-Wear which Brown Thomas sold in May to a management group backed by UK private equity firm Alchemy Partners for over €70 million.

Brown Thomas chief financial officer Ray Hernan declined to say what percentage of the group's turnover had come from A-Wear, but he said that business was profitable when it was sold.

The group's chief executive, Nigel Blow, said in a statement: "The results for 2006 reflect strong growth in turnover and improved margins as well as good cost control across all business divisions within the group. The strong performance in the four Brown Thomas department stores follows a capital investment programme undertaken in recent years which has continued in 2007." The group said yesterday plans were at an advanced stage to start a significant refurbishment of its flagship store on Grafton Street early next year.

Mr Hernan said the retailer was planning to invest €15 million in the refurbishment. The store is moving all its men's wear to the lower ground floor, freeing up the ground floor for "new offerings" that the company will reveal in due course, Mr Hernan said. The Cork and Galway stores were refurbished in 2006. Mr Blow said: "All department stores are performing well and we are confident that the results for the current financial year will be ahead of 2006."

The company did not pay a dividend in the year to February 4th, 2007, to its shareholders, Canadian businessman Galen Weston and his family.