The rise in consumer spending and the booming housing market has delivered a strong return for DID Electric, which has reported a 25.47 per cent rise in pretax profits to €2.88 million.
With consumers flocking in droves to new-style electrical goods such as flat-screen televisions and digital cameras, the rise in profits came as DID increased its sales by 15.27 per cent to €75.8 million in the year to November 2005 from €65.76 million in the previous period.
In business for more than 30 years and controlled by Howth-based businessman Gerry Houlihan, DID is one of the best-known indigenous brands in the retail sector. Newly-filed accounts for the company that runs the business, Home Appliances, show that no dividends were paid during the year. Retained profits grew to €11.88 million.
With operating profits on the rise to €3.03 million from €2.44 million, the operating profit margin increased to 3.99 per cent from 3.72 per cent. However, DID's profit margins remain far behind those of Power City, its nearest Irish-owned rival.
The most recent accounts for Power City show that it had a 9.2 per cent operating profit margin in the year to September 2004, with operating profits of €8.18 million on sales of €88.83 million.
DSG Retail Ireland - the London-listed owner of the Dixons, Currys and PC World brands - had an operating profit margin of 2.74 per cent in the year to April 2005, with operating profits of €3.13 million on sales of €114.05 million.
No DID representative was available last evening to discuss its latest results. The firm has 12 outlets, with eight in Dublin and its immediate suburbs. The others are in Drogheda, Kilkenny, Newbridge and Tullamore. A new store is planned in Bray.
With consumer spending generally on the rise, the company is likely to be a big beneficiary of the current period of housing boom. The construction of up to 80,000 new homes this year will inevitably stimulate demand for big-ticket household goods such as fridges, cookers, dishwashers and laundry and heating equipment.
DID Electric, which uses its Irish ownership as a marketing tool, sells goods online. However, its accounts do not detail the level of sales on the internet.
The business is one of several owned by Mr Houlihan and members of his family.
