That is according to new accounts filed by Lifestyle Sports (Ireland) Ltd, which show the firm’s pre-tax losses halved from €2.4m to €1.2m in the 12 months to the end of September 28 last year.
In their report, the directors said the business has recorded revenue growth since the end of last September, although in the period under review revenues dipped slightly from €104.99m to €104.18m.
The company operates the Lifestyle Sports business through 38 bricks-and-mortar stores, as well as online.
In their report, the directors said: “The company’s profitability continued with increased momentum post-year-end and for the quarter ended December 31, 2024, which includes the key Black Friday and Christmas trading period, the company reported a €1.2m or 23pc increase in Ebitda [earnings before interest, tax, depreciation and amortisation].
“This increase in cash profitability was a function of not just continuing cost savings, but a welcome return to top-line growth with like-for-like revenue growth of 4.5pc and an increase in gross margin per cent by 240 basis points for the quarter versus the same quarter in the prior year.”
Growth in revenue was broad-based across both the performance and the sports-inspired fashion segments in the men’s, women’s and children’s ranges.
“This performance, in what remains a challenging and competitive market, was validation of the company’s strategy based on premium omni-channel retailing focused on the stylised athlete, benefiting from exclusive access to some of the most popular sports inspired brands in Ireland,” they said.
Lifestyle Sports is owned by the Wexford-based Stafford Group.
Increased cash profitability contributed to a €1.53m reduction in operating losses
Reflecting on the 2024 fiscal performance, the directors said results for the year were “encouraging”. The company reported a €2.34m, or 50pc, increase in Ebitda from €4.66m in the year ended September 30, 2023, to €7m in the year ended September 28, 2024.
Increased cash profitability contributed to a €1.53m reduction in operating losses to €408,000.
Exceptional costs of €624,372 relating to store-closure costs and restricting costs contributed to the pre-tax loss of €1.23m.
The recovery in cash profitability was largely attributable to cost savings arising from the completion of the first full year of operations of the company’s new automated warehouse facility, and further savings across property and personnel costs.
Numbers employed reduced from 408 to 383, as staff costs declined from €13.5m to €13.45m.
The pre-tax loss of €1.23m takes account of non-cash depreciation costs of €7.41m.
In a post-balance sheet event, the directors revealed the company participated in the successful refinancing of the Stafford Group with Bank of Ireland, to put in place five-year facilities maturing in November 2029.
They successfully paid down almost €7m of bank debt over the preceding 12 months from a combination of asset disposals and tighter working capital management. The Stafford Group refinanced its total banking facilities of €22.7m through a combination of term loans amounting to €19.2m and overdraft facilities amounting to €3.5m.
They said the refinancing extends the Stafford Group’s multi-generational relationship with Bank of Ireland and ensures the group and company are appropriately capitalised to secure their long-term strategic objectives.
Shareholder funds at Lifestyle Sports (Ireland) at the end of last September totalled €40.87m, as cash funds declined from €11.2m to €8m.
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