PRETAX PROFITS at Avoca Handweavers fell by 45 per cent to €406,746 in the 12 months to January 2009, according to accounts just filed.

Turnover at the family-owned company was down by €515,776 to €48.5 million, compared to just over €49 million the previous year. Avoca Handweavers, which specialises in high-end food, fashion and furnishing products, operates eight retail premises in the Republic and one in Belfast. It also has a store in Maryland in the US.

Company director Simon Pratt said yesterday that the drop in profits was mainly due to the 17 per cent fall in the value of sterling during the period, which affected its retail sales in Belfast and the company’s wholesale operations.

Avoca exports its fashion and furnishing products to approximately 1,500 wholesale customers worldwide, 900 of whom are located in Britain. Mr Pratt said the fact that fashion products are sold a season ahead means it is difficult to estimate the effect of currency fluctuation.

The company’s investment in the Rathcoole store, which opened in 2006, has also put pressure on profits due to significant interest rate payments on the investment, Mr Pratt said.

The results show that the company saw its its workforce fall from 622 to 590 people in the year ended January 2009.

The company’s directors – who are listed in the accounts as Donald and Hillary Pratt and their four children, Amanda, Vanessa, Ivan and Simon – received total emoluments of €1,082,699 for the year, compared to €1,630,095 a year earlier.

No dividends were paid during the year.

Mr Pratt said yesterday that while profitability is improving in the company, he estimated turnover will be down by 7 per cent this year.

He said that while it had been a difficult two years, revenues had been solid, and the company had remained profitable.

While the company accounts state that Avoca “plans to add further retail facilities to expand its overall business in a controlled manner”, Mr Pratt said there was no immediate plans to open a new retail premises.