British retailer Laura Ashley lost sales and profits in Ireland last year as it failed to take advantage of the spending boom in a market in which it makes almost 10 per cent of its profits.
While a turnaround in the fashion and furniture chain's home market after a long decline led it to declare its first dividend since 1997 last year, accounts just filed for its Irish unit show a deterioration in the same period.
Revenues at Laura Ashley (Ireland) fell to €8.98 million in the year to January 28th from €9.23 million in the previous period, itself down from €9.47 million a year earlier. Operating profits in the most recent period fell to €727,567 from €762,770 and pretax profits fell to €779,647 from €823,106.
With outlets at Grafton Street and the Blanchardstown Centre in Dublin and Merchant's Quay in Cork, the Irish division opened a fourth store on the Tuam Road in Galway last month.
Although Laura Ashley's presence here is modest, given its 180 British stores and 210 franchise outlets in 29 international markets, its Irish unit makes a significant contribution to the bottom line. At conversion rates yesterday, for example, the operating profit in Ireland of €727,567 (£486,854) amounted to more than 9 per cent of the parent's operating profit of £5.4 million.
The company's head office in London did not respond yesterday when asked about trading in Ireland in the current period.
A note with its accounts said the directors "consider the state of affairs of the company is satisfactory and that the present level of activity will continue for the foreseeable future".
Once a fashion icon, known for its floral print clothes,
Laura Ashley struggled for years to find form in its home market, with five chief executives since 1998, when it was taken over by Malaysian United Industries.
However, current chief executive Lillian Tan has led a revival in a group that has revamped stores and stripped some £40 million from its cost base in the last three years.
The chain followed its declaration of a dividend for the year to January with an interim profit in the six months to July that was ahead of expectations.
Pretax profits of £3 million in the first half reversed a £200,000 loss in the same period last year.
