Johnson And Perrott profits fall 7%

PROFITS at Cork car dealers Johnson & Perrott slid 7% to €5.3 million last year despite a 3% increase in revenues.

The family-owned motor dealership, car hire and fleet specialist said turnover edged up €4m to €129m but blamed increased competition in the car hire market for putting pressure on margins. The company’s gross profit margin fell from 8.4% to 7.1%, which meant the company kept €1.30 less from every €100 in sales.

But group chief executive Mark Whitaker said he was pleased with the results, which covered the year to December 2004, but warned the competitive pressures had continued into 2005. Mr Whitaker was upbeat about the group’s prospects, however.

“In January of next year, the group will open its €11m motor dealership development at Mahon Point Retail Park in Cork. This is the final part of a four-year property investment programme, which involved an overall investment of €23m,” he said.

The company will consolidate its existing dealerships, in Emmet Place, Victoria Cross and Penrose Wharf, at the new Mahon Point site. It will retain its Avis car hire business in the city.

The bottom line was boosted by a once-off €500,000 windfall, which the company received in return for vacating a building in Dublin before its lease was up. Directors’ remuneration went up from €441,000 to €558,000, with the bulk of the increase down to a decision to appoint an existing senior manager as an executive director.

The average number of persons employed by the group fell from 302 to 290 during the year, but the bill for wages and salaries crept up €400,000 to €8.6m.

“The directors are confident that the long-term growth the group has achieved will continue, despite difficult trading conditions,” the company said. It paid dividends of €365,000 during the year, which was unchanged on the previous year.

Johnson & Perrott has operations in Cork, Shannon, Dublin, Galway and Donegal and also serves regional airports in Sligo, Farranfore in County Kerry and Knock in Co Mayo. Its car dealerships sell Opel, Honda and Volvo cars. Its accounts show it held over €13m in cash at the end of the year, a slight fall from €15.5m at the end of 2003.

The company’s tax bill went up from €706,000 to €798,000.

It also spent €6m buying back shares.