Apple recorded an 18.6% drop in full-year profits from its UK retail operations last year, after it was hit by wage and rent rises.

Apple's UK profit fell almost 19% in the year

  • Full-year pre-tax profits slip 18.6% to ÂŁ14.7m
  • Sales flat at ÂŁ897.6m 
  • Operating profit falls 17.9% to ÂŁ15.3m

The group, which has 37 UK stores, revealed a ÂŁ14.7m UK retail pre-tax profit in the year to the end of September 2014. Sales were flat at ÂŁ897.6m, according to a Companies House filing.

Operating profits were driven down 18% because of “increased operating expenses” mainly from “increased payroll and rent expenses”.

Total staff costs in the year rose climbed 4.2% to ÂŁ135m, with wages and salaries accounting for ÂŁ103.6m. Since September last year, Apple has opened one new UK store.

The retaielr has faced scrutiny over its UK tax affairs and the filing revealed that it paid ÂŁ7.6m UK corporation tax in the year, a rise of 4.2%.

The European Commission is investigating Apple over its tax affairs and its offshore arrangements in Ireland. Amazon and Starbucks are also being probed as part of the same investigation.

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