Johnson & Perrott halves its losses

CORK-BASED motor dealership Johnson & Perrott more than halved its pre-tax losses last year, according to accounts filed with the Companies Office.

The group recorded a pre-tax loss of just under €1.3 million in 2010; well down on the €3.21m loss it incurred in 2009. Operating losses were also considerably down in the year from €2.96m to just under €1.2m. Similarly, the group’s turnover improved, going from €70.12m to just shy of €73m. Total after-tax losses amounted to €1.18m; down from €2.76m for the previous year.

Johnson & Perrott’s business is divided between its car dealership, car rental and fleet management divisions. Last year it operated five car dealerships and three commercial vehicle franchises in Cork; where it is the approved dealer for the likes of Volvo, Honda, Land Rover, Opel and Kia on the car front and Mercedes, Opel and Mitsubishi on the commercial vehicle front.

It also operates in the car/truck/van rental sphere as a nationwide licensee for Avis Rent-a-Car.

The group’s management said, via the accounts, that all of its markets continued to be “extremely competitive” throughout the year.

“The overall market for new car sales improved significantly in 2010, with unit sales in the motor dealerships increasing by 55% over 2009. The company’s fleet division performed well, despite the continued concern over used car values.”

Management pointed out that the company has increased its market share and has bank lending facilities in place until next March.

“The directors are satisfied that there is sufficient funding in place to cover both working capital and capital requirements for the next 12 months,” the accounts said.

Within the latest set of accounts, the directors said while they foresee further improvement in their 2011 figures, they don’t expect a return to previous levels of growth and profitability “until an improvement in both inward visitor numbers and the domestic economic environment” is seen.

“The directors have taken a number of significant steps to reduce the costs and overheads of the group and company to deal with the current business environment. The company has put in place a robust business plan, together with management policies, which will assist in reaching the targets set for the company in the future,” they added.