A hike in costs, including an extra £1 million on its annual payroll bill, hit the profit levels of home interiors retailer Harry Corry last year.
New accounts for the family-owned business, published by Companies House, show it recorded a 5.5% uplift in turnover to £55m for the year to February 29 2024.
But higher operational costs meant profit before tax fell by around half a million pounds year-on-year to £1.76m.
The Irish curtain and bedding specialist said the additional revenue it generated during 2023/24 followed the opening of its 56th store.
Harry Corry spent £150,000 opening the new outlet at Derry’s Crescent Link retail park in September 2023, creating 10 jobs.
Founded in 1968, the family-owned retailer now has 20 stores in the north, with 26 across the border and 10 in Scotland.
Despite the increased turnover, the latest accounts for the business show it faced a £2.3m hike in distribution costs to £22.5m last year.
Payroll costs also increased by 9% (£1.15m) in 2023/24, taking the total staff costs to £14.14m for the 12 months.
The rising staff costs came during a period where staffing levels were marginally reduced to an average of 701 for the year ending February 2024.
The lower profit level also resulted in a reduced divided of £1m paid to shareholders, down from £2m in 2022/23.
A report from the directors, published alongside the accounts said: “A weaker US dollar and reducing freight costs made purchases less expensive whilst a slightly stronger Euro had a positive impact on sales and this resulted in a modest increase in gross margins of 0.34%.
“The increase in sales due to the additional store and the increased marketing spend was offset by the increase in operating costs.”
