Motor dealership has €600k losses
In accounts filed with the Companies’ Office, they show the Ennis-based Western Garages Ltd had pre-tax losses of €594,503 to the end of December 2008.
The chief factor behind the losses is €316,464 in interest payments that mainly arise from costs associated with the company relocating to new showrooms on the eastern approach to Ennis in October 2006.
Company figures show that prior to the relocation, the company’s bank interest charges in 2005 were €30,897 when it recorded a pre-tax profit of €414,868.
The company’s accounts for 2005 and 2006 show that it spent €3.2m to acquire unspecified fixed assets. The figures show the company recorded an operating loss in 2008 of €278,039 and this followed the company recording an operating profit of €295,041 in 2007.
The abridged accounts do not provide the company’s turnover.
However, gross profit dropped 46% from €1.6m to €865,472 in 2008.
The company — wholly owned by the Wall family with directors, Justin Wall operating as principal dealer and Brendan Wall as commercial sales manager — was one of the first car dealerships in Ireland, with a history dating back to 1939. It was appointed a main Volkswagen dealer in 1957.
The loss last year reduced the company’s accumulated profits to €1m.
The figures show the firm employed 21 people in 2008, including directors, with staff costs dropping 18% to €783,805. Remuneration to directors last year dropped 40% to €249,275.
The accounts show that the company has a bank loan of €4.8m at the end of 2008.
According to the directors report: “Withstanding the downturn in the motor industry is the most significant challenge of the company. The company has a focus on controlling overheads, together with the effective management of working capital and cash flow.”
The company yesterday declined to comment.
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