Ciaran McCormack, MD of Select Tech Group photographed at their Fonthill office. Photo: Frank McGrath
Pre-tax profits at the tech retail group which purchased DID Electrical last December declined by 23pc to €1.36m.
New accounts filed by Apple reseller Select Technology Sales and Distribution Group Ltd show that the group recorded the drop in profit after revenues dipped by 10.5pc from €193.55m to €173.1m in the 12 months to the end of last September.
The group – which formerly operated the Compu b brand before rebranding to Select – purchase the then family-owned DID Electrical on December 12 and in the new accounts the directors state they believe “the acquisition will be cash positive in the initial period to 30 September 2024”.
The DID Electrical purchase from the Houlihan family adds 23 stores to the group. Prior to the purchase, Select Group was a premium Apple reseller across 34 locations in Ireland and the UK.
Select Tech is owned by its management team of four directors, led by managing director Ciaran McCormack and financial director Alan Victor. The group’s Irish revenues last year decreased by 7pc from €57.67m to €53.56m.
The group recorded 69pc of its revenues in the UK where revenues declined by 12pc to €119.55m last year.
“Pressures remain principally in the UK and also the Irish retail and education market sectors, and the release cycles remain challenging, however the directors are confident that the business will continue to grow and focus further on profitability enhancement,” said the directors.
They state that the group has successfully rebranded the previous Compu b and Stormfront brands to trade under the business name of ‘Select’ and continues to strengthen the brand across Ireland and the UK. Last year, numbers employed reduced from 351 to 223 as staff costs declined from €11.64m to €10.18m.
The profits last year take account of non-cash depreciation costs of €622,051. Directors’ pay increased from €1.09m to €1.2m.
Operating lease rentals costs reduced from €3.78m to €3.55m. The group paid dividends of €109,000 during the year. The group recorded operating profits of €1.67m and net interest payments of €312,323 reduced profits to a pre-tax profit of €1.36m. The group recorded a post-tax profit of €1.16m after paying corporation tax of €198,985.
Shareholder funds totalled €5.27m that included accumulated profits of €4.66m. Cash funds almost doubled to €8.3m.
