Gowan Group losses reach €50m

THE Gowan Group, one of the largest family-owned businesses in Ireland, reported pre-tax losses of more than €50 million in 2008 compared with a profit of €2.6m in the previous year.

The company paid out €1.7m in dividends on ordinary shares as turnover fell from €351m to €258m. Gross profit plunged from €40m in 2007 to €6.4m, according to accounts just filed by the company.

The Gowan Group, which holds the Irish franchise for Peugeot, is one of the country’s biggest motor distributors. It also owns a home appliances distributor and Senator Windows.

“The directors noted that the group’s performance in 2008 was adversely impacted by a slowdown in the economy, resulting in a reduction in turnover in subsidiary companies. It was also impacted by the large declines in both equity and property markets,” the accounts read.

The company’s directors praised the staff at the business, saying the performance of the group has been achieved by the people working in it.

“Each of the subsidiaries is managed separately but reflects the group philosophy and ethos.

“There are many long serving members of staff and the relatively low turnover of personnel reflects the general policy of providing good terms and conditions of employment while dealing with staff as well as other stakeholders in the business, in a fair and consistent manner.

“Their continued loyalty and hard work is much appreciated,” they said.

The company’s managing director, Michael Dwan, said last year that he expects the company to be “cash break even” in 2010.

Apart from its trading businesses, the group has a significant investment portfolio, including equities, property holdings and stakes in international managed funds.

It also has a stake in Webprint Concepts, which prints the Irish Examiner.

Late last year, the company closed Gallic Distributors, a subsidiary that held the distribution rights for Citroen vehicles. It said, however, it is keeping a number of Citroen dealerships, but the distribution business will now be handled directly by the French car company.

Staff numbers at the company fell from 584 in 2007 to 561. Staff costs were up slightly from €28.2m to €28.3m.