A €1 million charge for restructuring its business left independent builders’ merchants and DIY specialist, Associated Hardware, with losses of €520,000 last year, the latest figures show.

The group’s annual returns show that sales fell 6 per cent to €99.8 million in 2010 from €106.4 million the previous year.

Its operations returned to profit, earning a surplus of €735,000 last year from a €337,000 loss in 2009.

The group restructured the business last year after entering a joint venture with National Hardware in 2009. The €1.1 million costs associated with this left it with a loss before tax of €520,000.

Associated Hardware was formed by 60 independent DIY and builders’ merchants businesses to give them the buying power to compete with big chains.

The company operates by buying building and general hardware supplies for sale to its members, who operate under the Homevalue brand.

United Hardware, the joint venture with National Hardware, was established to give it extra buying power, according to Associated’s chief executive, Mark Delaney.

Commenting on the 2010 results, Mr Delaney said they were encouraging. “Although market conditions remain difficult, we are hopeful that the business shows signs of stabilising, and we are now well-positioned to capitalise on this.”

The group’s balance sheet shows that net assets at the end of last year stood at €4.4 million, just over 6 per cent down on the €4.7 million recorded at the end of 2009.

Trade creditors accounted for in excess of €16 million of the group’s €23 million debt.

Associated Hardware employs over 60 people in its operations.