THE FOUNDER of Hughes & Hughes booksellers says the relaunched chain expects to record a “break-even or better” performance in its current financial year.
Derek Hughes was commenting yesterday on recent filings by Sivota Ltd to the Companies Office that confirm the chain recorded a loss of €342,794 in its first six months of business to the end of February last year. The firm recorded “a similar loss” in the 12 months to the end of February this year, he said.
“If we can maintain the sales we had last year – and already we are 6 per cent up on last year – we will achieve a break-even or better as we have taken costs out of the business. No fortunes are being made.”
Mr Hughes said the company recorded the loss last year “as we didn’t achieve our sales target. It is a very difficult market and maybe we were too ambitious.”
Referring to the loss to the end of February 2011, he said such a loss with any new business was normal. “Operationally, I am very pleased and satisfied with how the business has progressed.”However, he described the retail market as “challenging and tough”.
Hughes & Hughes Ltd collapsed in February 2010 with debts of almost €15 million but Mr Hughes was able to resurrect a downsized business within months.
This was done with the investment of the men behind the Bus Stop chain of newsagents, Aidan Masterson and Pierce Moloney.
All three are directors of Sivota Ltd which operates Hughes & Hughes stores at Dundrum, St Stephen’s Green, Swords, Santry and Ennis, employing 65 staff.
The figures for the period to February 2011 show the loss includes an exceptional cost of €78,602 arising from accepting unredeemed vouchers from Hughes Hughes Ltd that went into receivership.
“Last year our sales were up 2 per cent on the previous year on a like-for-like basis in a market where Nielsen said book sales were 15 per cent down,” Mr Hughes said.
“We have increased our market share. There was positive growth in the business last year, but not to the extent we had projected.”
The accounts are abridged and he declined to provide revenue figures for last year or in 2010-11.
Mr Hughes said the costs that had been taken out of the business through greater efficiencies included a lower head count at the firm’s head office.
The former Hughes Hughes business “was 100 per cent books, but we are going for a 60-40 breakdown in terms of books and non-books that includes stationary, cards, toys and games”.
