Merc dealer’s profits power through €1m mark

PRE-TAX profits at Limerick Mercedes-Benz dealer Frank Hogan have powered through the €1 million mark.

The latest accounts for Frank Horgan Limited, filled with the Companies Registration Office, show that pre-tax profits for the 12 months to April, 2003 hit €1.05 million on pre-VAT sales of €22.2 million, compared to profits of €924,869 on sales of €21.1 million a year earlier.

The company's corporation tax bill fell to €176,733 in 2003 from €192,667 in 2002. The company has 52 employees with a wage bill of €1.2 million, up from €0.9 million in 2002.

The accounts show that the company directors received €191,695 in remuneration and that €354,624 was paid towards directors pensions in 2003.

The accounts indicate that the company cut its bank overdraft exposure from €2.3 million in 2002, to €1.3 million in 2003.

The accounts give a breakdown of trading accounts within the firm, with the "parts" section having sales of €1.5 million (€1.3 million), delivering a profit of €266,316 (€194,470).

The "vehicle sales" department had gross sales of €16.5m (€16m), returning a departmental profit of €1.4m.

The "shop" section with sales of €1.2m made profits of €20,339, down from €89,279 in 2002.

The "labour" section with sales of €1.4m returned a profit of €659,223.

The "forecourt" made a loss of €9,914 on sales of €1.37m. The directors did not propose to pay any dividend for the year under review. As of March 31, 2003 the company had retained earnings of €2.7m and shareholders funds stood at €3.6m.

The company's insurance bill rose from €101,443 in 2002 to €126,130 in 2003 while bank charges rose from €34,133 to €46,853.

The accounts show that only two of the directors own shares in the company Frank Hogan, 29,994 and Frances Hogan, six.