Pamela Scott returns to profit after owner forgave €2.7m loan
Pamela Scott Flairline Fashions reported a pre-tax profit of 4.5 million euros last year.
New accounts filed by women’s fashion retail company Flairline Fashions Ltd show the business has seen profits largely thanks to Pamela Scott’s owner Sean Barron writing off a £2.7million loan euros that the company owed him.
The pre-tax profit of 4.5 million euros in the 12 months to the end of last August followed a pre-tax loss of 235,069 euros the previous year. As the business recovered from the impact of Covid-19, the company’s revenues totaled 10.17 million euros in the 12 months ending late last August, an increase of 16% compared to revenues of 8.74 million euros recorded the previous year.
The write-off of receivables of €2.7 million was recorded as exceptional items for €3.5 million and the other items included a reversal of provisions on liquidated subsidiaries for €488,703 and a reversal of provisions for previous years for €310,287. €. The company’s income statement also benefited from “other operating income” of €1.86m – made up largely of payments from the Covid-19 wage subsidy scheme of €1.46m.
The “other operating income” item includes a reduction in Covid-19 commercial prices of €200,968, government subsidies of €147,786 and €24,841 for the Covid-19 online sales system.
‘Other operating income’ also included €22,422 relating to ‘insurance claims received’.
On the general performance of the business, the directors say the group’s street operations “were closed for a significant part of the year” due to Covid-19.
The group’s online retail offer “did well” over the financial year and “online turnover increased dramatically during the Covid-19 pandemic”.
The administrators specify that the group has increased its investments in its online sales platform “and will continue to invest in its online services to better meet customer demand”.
The group is looking to increase its market share in the e-commerce market and further increase its growth and profitability, according to the directors.
The group returned to full operational capacity in 2022 and there were no further significant disruptions due to the pandemic. However, directors add that following the outbreak of conflict in Ukraine in February, the group faced supply chain disruptions and inflationary pressures on the costs of materials and utilities.
The number of employees last year went from 98 to 92. Personnel costs went from €2.05m to €2.7m. The remuneration of directors increased from €140,945 to €431,493.