Pre-tax profits at Arnotts have been boosted by its expansion in Dublin, rising by 18 per cent to £3.4 million (€4.3 million) for the six months to July 31st from £2.9 million in the same period last year.
Arnotts cited sales growth at the newly-enlarged flagship store in Henry Street, Dublin, as the main reason for the boost.
Sunday opening hours and an extension, by one hour, of the normal shopping hours, introduced last year, also contributed to increased sales. "That would not be a big profit factor. It will take a few years for the sales to build up to a profit factor," the managing director, Mr Seamus Duignan, said.
Turnover, including concession sales, increased by 19 per cent, to £51.1 million (€64.9 million) from £42.8 million. Excluding concession sales, turnover was up by 16 per cent to £36.7 million (€46.5 million) from £31.5 million, although Mr Duignan said that ongoing refurbishment work in the Henry Street store would have disrupted some departments. Arnotts is spending about £5 million in refurbishing the store this year as part of a £45 million programme which began three years ago and has increased the retail floor space from 165,000 sq ft to 295,000 sq ft.
It is also keeping under review the possibility of opening a fourth city centre store. "We are still reviewing the situation and looking at the options. A lot of work has gone into that," Mr Duignan said.
Arnotts stated that further progress in the second half of the year was expected on foot of the results. It has net debt of £32 million and a gearing of 36 per cent.
Other stores, including Boyers and its Grafton Street premises, performed well along with Brinks-Allied, in which it has a 50 per cent stake.
"While it [Brinks-Allied] is still not part of our core business, we are happy holding it. But we would sell it at a good price," Mr Duignan said.
The Stillorgan store, however, suffered from the effect of a rent review. The board declared an interim dividend of 5.5p (6.98 cents) per share compared to a dividend of 4.5p (5.71 cents) per share last year.
