Smyths has recorded its best ever performance, with sales soaring and record pre-tax profits almost doubling.
The UK business of Smyths Toys has recorded record pre-tax profits of £18.11m. The Irish Examiner reports that new accounts filed by Smyths Toys UK Ltd with Companies House show the business almost doubled its pre-tax profits last year from £9.5m to £18.11m. This followed revenues soaring to a new record level of £788m, an increase of £167.9m, or 27%.
The directors said they were pleased with the results, particularly in the current economic climate, the competitive market place and taking into account the Covid-19 pandemic.
The UK business recorded its best ever performance despite all of its bricks & mortar stores closing for a prolonged period from January to April last year due to UK government Covid-19 restrictions. However, once these restrictions were eased, according to the directors report, “all stores fully reopened and performed strongly for the remainder of the year”.
The directors report added that further expansion is expected in the UK market in the coming years, through the opening of new stores.
Smyths Toys operates 108 stores in England, Scotland and Wales with another seven in Northern Ireland. The company recorded post-tax profits of £13.18m after paying corporation tax of £4.93m and siad its employee total has increased from 2,901 to 2,979.
Separate accounts for Smyths Toys NI Ltd show pre-tax profits at the Northern Ireland unit increased by 59% to £1m last year as revenues increased by 9% from £46.47m to £50.7m.
Combined revenues at the UK and NI arms of the Smyths Toys business last year totalled £838.7m.
Looking to the future, the directors said the principal risks and uncertainties facing the business are competitive price pressures and foreign currency fluctuations, together with Brexit and the Covid-19 pandemic.
Smyths Toys continues to be a mainstay of the toy retail market and remains at the forefront of consumer consciousness via its hotly anticipated Top Toys recommendations, its popular Christmas catalogue and its annual Christmas TV campaign featuring the company’s mascot, Oscar.
In total, the group operates 231 stores across its entire network in the UK, Ireland and continental Europe. Along with the 115 stores in England, Scotland, Wales and Northern Ireland, Smyths Toys operates 21 in the Republic of Ireland, 67 in Germany, 17 in Austria and 11 in Switzerland.