The Blarney Woolen Mills group latest accounts show that pre-tax profits more than halved to €1.53 million for the year ending in January 2021.
However the group, which also operates the Meadows & Byrne chain, is expecting revenues to increase by 48 per cent or €1.88 million in the year to the end of January 2022 and expects revenue for the following year to increase again.
Revenue at the group declined by 43 per cent from €43.27 million to €24.7 million in 2021
Numbers employed by the group reduced by 226 to 262 as staff costs declined from €11.1 million to €5.83 million.
Directors’ pay increased marginally to €665,541.
Along with operating Blarney Woollen Mills and Meadows and Byrne shops around the country, the group also operates two hotels at Bunratty in Co Clare and Blarney in Co Cork.
In a note with the accounts the board said that it “remains convinced that with the group’s strong balance sheet and diversified trading, it is well positioned to withstand the financial pressures brought about by the (Covid-19) crisis and benefit from the expected economic recovery”.
The accounts said that while Covid has had an impact on the group, the company has traded ahead of forecast since the initial lockdown in 2020.
The group last year recorded an operating profit of €2 million but only after receiving €2.18 million in other operating income, chiefly Government Covid-19 wage subsidy payments of €2.14 million.
The group recorded a pre-tax profit of €1.53 million after incurring interest charges of €487,078.
Last year, retail sales at the group declined from €29.59 million to €19.53 million while hotel and restaurant sales declined from €10 million to €3.1 million.
Revenues at the group’s knitwear business reduced from €3.13 million to €1.83 million while concession income fell from €442,629 to €266,777.
At the end of January, 2021, the group had shareholder funds of €17.4 million while its cash funds increased from €2.6 million to €9.27 million.
The accounts said that in June, 2021, a fire caused extensive damage to its Bunratty hotel resulted in the temporary closure of the hotel and the group is planning to re-open the hotel in the second half of 2022.
The company has submitted an insurance claim to recover some of the costs, the accounts said.
