Challenging year ahead for Johnson & Perrott as pre-tax profits rise slightly
Turnover at the family-owned dealership, car hire and fleet specialist fell in the year to the end of December 2007 from €145.5m in 2006 to €144.7m.
According to accounts, the company said the market areas in which the group operated in the year continued to be extremely competitive and challenging throughout. It said that, in particular, car hire remained static with downward pressure on rates.
Company managing director Mark Whitaker said yesterday that the directors were pleased with the financial performance during 2007, but added that they did see a slowdown in the second half of the year.
“Like other companies in our sector we are finding 2008 a more challenging year,” he said.
In the year, operating profit increased to €4.73m from €4.72m.
According to the accounts, the company believes the principal risks and uncertainties facing it are an unexpected downturn in the tourism sector, which would impact the Avis Rent-A-Car business and the continuing threat of cost inflation in labour and material costs.
It said a substantial reduction in used car values would also affect dealership and leasing activities. The company also said that VRT changes introduced last July will impact both new and second-hand cars, but added that it is uncertain as to how this will impact on the price of cars.
Going forward, the company directors believe the growth achieved over the last number of years will continue in 2008.
Johnson & Perrott operate two car dealerships in Cork at both Mahon Point and the Douglas Road.
