The family owned electrical appliance and tech retailer Power City last year paid out €5.33 million in a “director retirement settlement” as profits slumped more than 70 per cent.
The payout is disclosed as an exceptional item in new accounts for the McKenna family owned Power City Ltd.
The director payment was the chief factor in pretax profits declining by 71pc from €9.3 million to €2.7 million in the 12 months to the end of September last.
Revenues increased 6 per cent from €94.48 million to €100.24 million.
The directors state that “trading activity during the period continued satisfactorily”.
The retirement settlement contributed to overall pay to directors rising from €1.58 million to €6.67 million.
The directors shared aggregate pay of €1.08 million last year which was down on the €1.39 million paid out in the previous year.
The profit last year takes account of non-cash depreciation costs of €1.75 million.
The accounts separately show that four directors resigned during the year.
Joseph Kelly resigned from the board on December 5th 2022, while Stephen Kelly, Stephen McKenna and Karen McKenna all resigned on February 22nd 2023.
The company’s annual return — signed off on Thursday, March 21st — shows that Stephen McKenna and Karen McKenna’s share of the business remains unchanged with the two respectively owning 10 per cent and 4.8 per cent of the firm. Joseph Kelly and Stephen Kelly were not listed as shareholders.
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Three directors remain on the board and they are Sinéad McKenna, Liam T McKenna and Dermot McKenna jnr who is the biggest shareholder of the business with 20 per cent of the business.
In a separate transaction, the company last August paid shareholder Aidan McKenna €5 million for his entire 10 per cent share in the firm in a share buyback and cancellation deal. Aidan McKenna was not a director of the firm.
The directors state that they “are satisfied with the results for the period and with the period-end financial position of the company”.
The numbers employed increased by 10 to 240.
Staff costs increased from €8.24 million to €14.22 million with the €5.33 million director retirement settlement the main driver in increased staff costs.
Cash funds reduced from €43.42 million to €36 million during the year while accumulated profits totalled €118.43 million.
Power City’s 11 stores are located in the eastern part of Ireland with its Dublin stores at Tallaght, Sallynoggin, Blanchardstown, Finglas, Coolock, Fonthill, Carrickmines, Swords, while there are also stores in Bray, Naas and Drogheda.
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