Motor dealership profits down after revenues drop 13%

Pre-tax profits at one of the largest motor dealerships in the west of Ireland last year dipped to €372,979 after revenues dropped by 13% to €27.1m.

The Galway-based Al Hayes Motors Ltd is a main dealer for the Volkswagen and Mitsubishi brands.

According to the directors’ report, “despite the current economic climate and the decrease in turnover, the company has maintained profitability in line with expectations and we are confident of maintaining those levels for 2012”.

The figures show that last year, pre-tax profits decreased by 6%, from €397,345 to €372,979. The dealer had €10m in accumulated profits and employed 40 at the end of October. Employment costs fell from €1.49m to €1.23m.

Al Hayes Motors recorded an operating profit of €350,419, down from €398,943 the previous year.

The firm has recorded consistent profits since 2008 when it sustained an operating loss of €695,260.

The company’s cost of sales last year decreased from €29.2m to €25.9m.

The accounts show that during the year, director Al Hayes charged the company €180,000 rent for premises compared to €600,000 charged in 2010.

The directors did not recommend the payment of a dividend last year.

Car sales accounted for €25.6m of revenues last year, with workshop sales accounting for €1.3m, and parts and miscellaneous income coming to €206,807.

The profits take account of non-cash depreciation costs of €60,256. The firm’s cash increased from €223,118 to €511,086.

After tax of €40,517, Al Hayes motors recorded a profit of €332,462.

The company’s gross profit last year declined from €1.89m to €1.1m, with the administrative expenses declining from €1.49m to €830,767.

A spokesman for the company declined to comment on the figures yesterday.