Revenues at TK Maxx firm increase to €240m as profits dip to €4m

Gordon Deegan

Revenues at the operator of clothing and homeware retailer, TK Maxx this year surged by 20 per cent or €40.48 million to €240.3 million as the business recovered from the business impact of Covid-19.

New accounts filed by TJX Ireland UC show that in spite of the increase in profits, pre-tax profits declined by 28 per cent to €4 million in the 12 months to the end of January 28th this year.

However, the €5.54 million pre-tax profit for the prior year period was skewed by €5 million in Employer Wage Subsidy Scheme (EWSS) payments which appear as ‘other operating income’ in the firm’s profit and loss account.

No EWSS payments were received in the 12 months to the end of January 28th this year.

The directors also state the decline in profit was due to a one-off payment of €3.8 million concerning licence fee charges for prior years.

The accounts also cover the performance of the firm’s Homesense stores.

The directors state that there were no pandemic related closures during the 12 months compared to closures covering 29pc of the prior period.

The number of TK Maxx stores remained at 27 while the number of Homesense stores also remained the same at two.

The directors state that the company utilised tax deferral schemes in relation to VAT, PAYE and PRSI which resulted in a tax liability in 2022 “which has been fully repaid during the reporting period”.

The company enjoyed a post tax profit of €6.1 million after recording a corporation tax credit of €2.1 million.

The US-headquartered business recorded operating profits of €4.012 million and net interest costs of €12,000 reduced profits to a pre-tax profit of €4 million.

Numbers employed by the group declined from 1,476 to 1,385 and staff costs reduced from €30 million to €28.66 million.

The breakdown of revenues show that TK Maxx generated €231.23 million in revenues and €9 million was recorded at Homesense revenues.

The directors state that the stores here have prices that are generally significantly below department and speciality stores regular prices on comparable merchandise.

The directors state that the company does not generally engage in promotionally pricing activity such as sales or coupons.

The profit last year takes account of non-cash depreciation costs of €3.2 million while rent costs totalled €11 million and ‘other lease costs’ totalled €2.32 million.

At the end of January 28th this year, the firm’s accumulated profits totalled €44.75 million. The firm's cash funds last year declined from €46.12 million to €29.34 million.