Smyth’s Toys UK arm enjoyed a record sales year last year, passing the €1b mark for the first time as revenue surged by 16%.

Smyths Toys UK has reported that revenue surged by 16% or £122.78m, from £788m to £910.78m (€1.05b).

The business operates Smyths stores across England, Scotland and Wales, where pre-tax profits increased by 8% from £18.11m to £19.49m (€22.46m).

The company stated that the increase in revenue was due to rising footfall in stores as customers returned post Covid-19 restrictions. The opening of five new stores in 2022 also added to the total. The increased footfall and new store openings meant that Smyths Toys UK increased its total employees by 326, and staff costs increased by 27% from £45.49m to £57.85m.

The company’s gross margin increased from 16% in 2021 to 18%  in 2022, thanks to a focus on costs.

The directors stated that they are pleased with the results given the current economic climate and the competitive marketplace, with revenue made up of £860.92m in retail sales and £49.86m in services to group companies. They added that further expansion is likely to take place as the retailer looks to open more new stores in the UK region.

The company’s performance resulted in the business paying out a dividend of £30m.

Smyths Northern Ireland arm, which operates seven stores, recorded revenues of £56.19m last year and pre-tax profits of £1.1m.

The size of Smyths Toys overall business across the UK, Ireland and Europe has increased sharply since last year with the expansion into France following the acquisition of PicWic Toys in France in July 2022 and expansion in The Netherlands and Germany.

Smyths Toys now operates 283 stores today across Ireland, the UK, France, Germany, Austria, Holland and Switzerland.