Car dealership optimistic after ‘annus horribilis’

THE managing director of one of the mid-west’s largest motor dealerships expects the business to return to profit this year after an “annus horribilis” last year.

Noel Daly of main Toyota dealer O’Mara Motors (Limerick) Ltd was commenting yesterday on company results for 2009 which show that pre-tax losses increased six-fold, from €96,274 to €615,380.

The company sustained the loss after turnover plunged by 57% from €17.8m to €7.6m to the end of December last.

Mr Daly said yesterday: “Last year was the biggest hit we took in 40 years in business. It was a shocking year, our annus horribilis. There was nothing as bad as last year.”

Mr Daly said that the company “has now turned the corner after two tough years and I don’t know if we would have been able to sustain another bad year. We expect to return to profit this year.”

The firm’s revenues have been improved by the Government’s scrappage scheme and Mr Daly welcomed the six-month extension to the scheme.

He said: “The scrappage scheme has made cars more affordable. I know some motor businesses would have preferred if there wasn’t an extension as that would have given a lift to business in December, but it will be good for business next year.”

The accounts show the company had accumulated profits of €1.4m at the end of last year and Mr Daly said: “We have a healthy balance sheet and are optimistic for the future. The first quarter of next year will tell a lot.”

The firm has state-of-the-art showrooms on the Tipperary Road out of Limerick city, covering 28,000 sq ft on three floors.

The directors’ report states that “the company has put in place a very significant cost-cutting programme to adapt to the changing business environment”.

Mr Daly said management “has led by example”. Remuneration, including pension contributions, for the three directors, Anthony O’Mara, Michael Mannix and Mr Daly, declined by 19% from €190,179 to €154,393 last year.

The numbers employed by the firm last year decreased by three to 31, with the wage bill declining 29%, from €1.052m to €749,528.

“Staff have had wage cuts and worked three-day weeks,” said Mr Daly.

“There has been more scrutinising of costs, but we have been anxious not to cut back on numbers because you lose all of that experience.”

The company sustained an operating loss of €519,326 last year compared to an operating profit of €18,165 in 2008.