Profits at Parragon Books Limited fell 68% last year during the wind-down of the company by DC Thomson, according to results posted on Companies House.
Gross profits for the financial year ending 31st March fell 68% to £5m from £16m in 2017. Turnover for 2018 totalled £26m, down from £39m in 2017, but the cost of sales was £21m.
DC Thomson director David Thomson said in a statement: “During the year the decision was taken to close the Parragon group after the business had made consistent losses in the recent years despite our best efforts and that of the team. The market for Parragon’s product, primarily in the promotional book sector, had declined and there were inherent structural issues that we could not see being resolved.
Last week it emerged that closing Parragon cost DC Thomson £41m.
Scotland's largest publishing company announced the closure of Parragon in February last year, putting 245 jobs are at risk of redundancy globally. At the time, DC Thomson told The Bookseller that increased competition and a lack of retail space had also played their part in the decision to shut down the business.
DC Thomson’s overall revenues for the year ending 31st March 2018 did, however, rise 2.7% to £207.3m compared to the previous 12 months. Pre-tax profits were up from £54m to £71.4m but profit for the year fell to £26.3m from £31.6m.