Bill Cullen’s firm returns to profit

THE main company owned by motor dealer and star of TV3’s The Apprentice, Bill Cullen returned to profit last year after incurring a pre-tax loss of €10.4 million in 2009.

Accounts just filed by Glencullen Holdings Ltd to the Companies Office show that the group incurred the loss after revenues more than halved in 2009 going from €53.7m to €26.3m.

The group operates a number of Renault dealerships across the country and the filings confirm that an impairment charge of €6m on the group’s property assets contributed to the pre-tax loss of €10.4m. The loss in 2009 followed the group recording a pre-tax loss of €8.2m in 2008.

The directors’ report states: “During 2009, the group experienced adverse trading conditions as the economic downfall continued and the new car market dropped by over 60% from 2008.”

The directors state, however, that new unit sales of cars increased by 500% in 2010 “and the group has returned to profitability”.

The directors’ report states: “During 2010, the group has seen a considerable volume and profit increase for the motor trading entities with its supply partner achieving market share in excess of 10% for the year. The increase in volume combined with cost reductions in 2008 and 2009 have seen the group return to trading profit.”

The accounts disclose that Mr Cullen loaned a further €690,626 to the group during 2009 bringing the total amount of his director’s loan to the group to €19m.

The filings show the group has three directors, including Mr Cullen, confirming that directors’ emoluments totalled €399,234 in 2009 — a 27% drop on the €547,389 total in 2008.

The figures show that the group reduced its bank loans from €19.6m to €14.2m at the end of December 2009.

The accounts show that the group’s operating loss in 2009 increased by 46% from €6.8m to €9.9m.

Bank loan interest payments of €487,779 — less than half of the €1.1m in 2008 — added to the group’s losses in 2009.

In relation to future developments, the directors state that “in late 2010, our supply partner has restructured the dealer network. This restructuring has left the group in a favourable position for considerable growth in the future”.