The directors of the Irish arm of clothing retailing giant H&M see growth opportunity here and are looking to optimise their portfolio with interior uplifts and rebuilds at Liffey Valley in Dublin and Cork.

That is according to new accounts for H&M Hennes & Mauritz (Ireland) Ltd which show that pre-tax profits declined by 46pc to €689,776 due to higher costs in 2021.

The Swedish-headquartered retailer’s pre-tax profits declined despite revenues increasing by €2.08m, or 4.5pc, from €46.41m to €48.49m in the 12 months to the end of November 2021.

The directors state that the retailer’s decrease in gross margin by 8.5pc was predominantly due to cost of sales increasing by 41pc from €12.09m to €17.09m.

Post-year end in May 2022, dividends of €2.5m were declared to its sole shareholder, H&M Hennes & Mauritz GBC AB, according to the directors.

In accounts signed off on March 27, the directors state that the retailer’s service has been enhanced with the launch of ‘click and collect’ and a new membership programme at the end of 2022.

On the retailer’s future developments here, H&M directors say they aim to maintain growth in competitive market conditions “and will continue to look for suitable locations for new stores and ensure relevance of product profile”.

The retail group here comprises 16 H&Ms, six COS stores and one & Other Stories, and the numbers employed declined by one to 374 in 2021.

The business achieved the 4.5pc increase in revenue despite one store closing during the year.

The directors state that the H&M Hennes and Mauritz Ireland “is a profitable business”.

“Post lockdown restrictions easing, the stores traded well, meeting customer demand,” according to the accounts.

Staff costs in 2021 increased by 3.5pc from €8.15m to €8.43m. The firm also benefited from unspecified ‘other operating income’ of €264,054 in 2021.

The profit for 2021 takes account of non-cash depreciation costs of €9.13m and lease costs of €2.65m.

At the end of November 2021, the firm had shareholder funds of €15m that included accumulated profits of €8.43m.

Globally, the H&M Group operates 4,414 stores.