Harvey Norman confident of return to profit in Ireland
Household goods retailer Harvey Norman is confident its Irish operations will return to profitability - on a pre-tax basis - in the "near-term".
Newly-filed accounts for Harvey Norman Holdings (Ireland) show operating profits rose 9% to €1m in its last financial year, while revenues jumped 13% to just over €206m.
The accounts cover the 12 months to the end of last June and show the business recorded a pre-tax loss of €426,060 after paying out nearly €1.43m in interest payments. The pre-tax loss also takes account of non-cash depreciation costs of €3.15m.
Losses were also attributed to the restructuring of Harvey Norman's business in the North. At the time of the filing of the accounts, Harvey Norman operated 15 stores in the Republic and two in the North.
Last November, the company restructured its debt and saw a €91.8m loan written off.
The retailer said it is confident of a return to "overall profitability" in the "near term". It also said its digital strategy has paid dividends, with "high double-digit" percentage growth noted in online sales last year.
An improvement in retail sales also helped its underlying performance, the company said.
"Construction activity has picked up and new dwelling completions, a key driver of business for Harvey Norman have increased. However, while the outlook is positive, there are potential headwinds in terms of the continuing uncertainty around Brexit," the company said.
