Johnson and Perrot turnover down 20%

TURNOVER at Johnson & Perrott fell by 20% to €115.3 in 2008 from €144.7m in 2008, according to figures filed with the Companies Registration Office.

The fall in sales pushed the company into a loss-making situation recording pre-tax losses of €2m in 2008 compared with a €4.8m profit in 2007. The company said in a statement the loss incurred by the group comprised an operating loss of just in excess of €1m, together with a provision of €960,000, which the directors considered was necessary to assist in the disposal of existing motor dealership stock during 2009.

The company which has extensive car sales, hire and repair businesses does not plan to pay dividends in the current year. The company paid dividends, agreed in the context of the 2007 results, of €502,785 in 2008, a 5% increase on 2007’s payment of €478,929. Directors remuneration fell to €663,763 from €681,015 a year earlier.

The company reported a net pension liability of €2.3m in 2008, up from €0.8m in 2007. Staff numbers fell to 288 (2007: 298) while staff costs rose to €11.6m from €11.4m in 2007.

The company said its Avis Rent-a-Car business suffered a fall in profits in 2008 due to reduced demand across all tourist markets leading to an over-supply of rental cars and a sharp reduction in rates.

“The second half of the year was very challenging for the motor dealership and fleet divisions of the group due to a sharp drop in the demand for and value of second-hand cars.

“The environment was made considerably worse by the changes in the structure of VRT in July and the fall in sterling, which greatly increased the flow of second-hand vehicles being imported from Britain.

“The lack of availability of consumer finance was also a key concern. These negative factors continued into the early part of 2009,” the company said in a statement.

Group chief executive Mark Whitaker said 2008 and the early part of 2009 reflected some of the most challenging trading conditions in the company’s 200 year history.

“We welcome the recent report on the Retail Motor Industry written by Dr Peter Bacon which contains an excellent set of recommendations across a wide range of issues and look forward to a positive Government response,” he added.

Johnson & Perrott noted the clear call for assistance for the car rental industry in the recent report of the Tourism Renewal Group and the strong recommendation by Dr Peter Bacon that the Government reinstate the VRT rebate for short-term car rental for a period of two years.

“Registrations of car rental vehicles fell from 18,971 in 2008 to an estimated 6,250 in 2009. If repeated in 2010, this will result in a significant shortfall in the level of cars available at our airports with a severe knock-on effect on the tourism industry as a whole.”