The UK business of American toy retailer Toys R Us may have had a dip in sales in its most recent full year period, but it still managed to record skyrocketing pre-tax profits.
According to Companies House files, the retailer’s pre-tax profit shot up by 82 per cent for the 12 months ending January 28, while operating profit snowballed £21.3 million compared to £8 million the prior year.
Despite this, Toys R Us said a post-Brexit competitive market and consumer uncertainty meant it recorded a £418 million in total sales — a four per cent dip year-on-year.
According to the accounts, the profit spike may have been driven by the 44 per cent reduction in administrative costs, as well as the 75 per cent reduction in remuneration for company directors — down to £429,000 compared to £2 million the year prior.
While Toys R Us has not yet clarified the reasons for the profit surge, employee numbers remained the same and the retailer opened 22 net new stores in the last financial year.
Toys R Us is part of the US-based Toys R Us Group and operates 100 stores in the UK.