Redundancy payouts have pushed bookseller Eason into the red
The book and stationery retailer outsourced warehouse operations and closed some retail units last year.
REDUNDANCY PAYOUTS HAVE pushed book and stationery retailer into the red as the firm plots to offload much of its Irish property portfolio.
Accounts just filed with the Company Registration Office (CRO) showed that the company, Eason Holdings PLC, recorded a net loss of €3.8 million in the 12 months to 28 January this year.
Some €4.2 million of the firm’s costs were related to restructuring expenses when Eason elected to outsource warehouse operations and close some of its retail units in Northern Ireland.
Eason Holdings runs 34 stores in the Republic and Northern Ireland. Overall, the group’s revenues stood at €137 million, down by €3 million compared to the previous year.
Retail revenues in the Republic were marginally ahead of 2017 levels, while Eason’s online revenues increased by “a very encouraging” 26.4%. Retail trade in the company’s Northern Irish stores was down 2.5%.
Eason’s directors said the performance of the group was “satisfactory” considering the ongoing decline in the news and magazine market and the increased competition in the book trade from online retailers in the UK.
The accounts showed there was an average of 657 staff on Eason’s books during, down slightly on the previous year’s tally. The group paid an average salary of around €33,000.
Property sale
Eason’s accounts also noted that a revaluation of the group’s property portfolio resulted in a €8.7 million increase in its value.
Last week, Eason wrote to its shareholders and sought support for a plan to sell over a dozen of its Irish properties, including its flagship O’Connell Street building. The key retail sites would be leased back to the company.
Eason chairman David Dilger and managing director Liam Hanly said the divestment plan that could yield a €60 million windfall for its shareholders.
The company said that, based on current market rates, it was sitting on property worth in the region of €90 million.
The filing with the CRO also noted the group sold its stake in EM News Distribution, a newspaper and magazine distribution service, in May 2017.
The move was made as part Eason’s strategy to focus more attention on its core retail business and new opportunities in the Irish market.
