New accounts filed by Screwfix Direct (Ireland) Ltd show that expansion costs combined with higher interest charges contributed to pre-tax losses increasing by 32.6pc to €2.07m in the 12 months to the end of January 31 this year.
Revenues increased by 27pc from €82.6m to €104.9m with the five new store openings bringing the number of Screwfix outlets to 39. The network has since grown to 40 in 2024.
“As the new stores mature, the expectation is that sales will continue to increase and the business will move into a profitable position in the next two to three years,” the directors said in the note accompanying the accounts.
Expansion of the Screwfix trade counter network is funded by intercompany loans
Numbers employed increased last year from 400 to 511 and staff costs rose 41pc from €9.47m to €13.3m.
The main activity of the business continues to be the sale of trade and DIY home improvement products to tradespeople and the general public.
The directors’ note stated that the company had a like-for-like revenue increase of 14.8pc and the increase was a combination of higher sales volumes in new stores and higher average selling products.
The directors state that the increase in prices is as a result of significant price inflation across raw materials, utilities and labour.
The directors also said that the business recorded an operating loss of €576,000 “with an increase in overheads in line with the new store opening plan”.
Profits were also hit by interest payments more than doubling from €632,000 to €1.49m and the directors state that the after-tax loss increased from €1.6m to €1.9m.
The directors of the Kingfisher Plc-owned business said the expansion of the Screwfix trade counter network in the Republic will be funded by intercompany loans from the group. Globally, Kingfisher operates more than 1,300 home improvement stores in nine countries and is listed on the FTSE 100.
Directors’ pay at Screwfix last year increased from €140,000 to €185,000.
The loss last year takes account of non-cash depreciation costs of €3.55m.
At the end of December last, the company had a shareholders’ deficit of €2.69m which was made up of accumulated losses of €9.69m offset by called up share capital of €7m.
The company’s cash funds decreased from €354,000 to €235,000.