Independent car rental firm profits hit €675k

Operating profits at the country’s largest independent car rental firm rose 15% last to €675,749.

Accounts just filed by Co Limerick-based Dan Dooley Group Ltd show the group’s operating profits increased after gross profit went up 40% from €5.84m to €8.23m in the 12 months to the end of November last (2012).

However, the group incurred a 6% drop in pre-tax profits to €525,625 as a result of net bank loan interest payments increasing almost five-fold to €150,124.

The firm’s administrative expenses rose from €5.2m to €7.5m. The business operates from 20 locations including all of the major airports.

According to the directors’ report: “In common with all companies operating in Ireland in this sector the company has been adversely affected by the global economic recession.

“However, the company expects an increase in tourism in Ireland and has set about expanding its business to meet the anticipated demand.

“As a result, the company has had to increase its cost base which has been matched with an increase in turnover. However, the directors are of the opinion that the company is in a position to further increase turnover in future years without any major increase in costs.”

The directors’ report adds that “the company continues to face strong competition in the market and the directors will continue to monitor costs and margins so as to trade successfully”.

The profit last year takes account of €154,114 in non-cash depreciation costs.

The profit last year contributed to accumulated profits increased from €848,588 to €1.255m. The firm’s shareholder funds increased from €11.8m to €12.22m.

The group’s cash pile increased from €2m to €2.876m. Remuneration for the firm’s directors last year increased from €258,438 to €268,009.

The directors do not recommend the payment of a dividend. The firm’s borrowings at the end of last August totalled €4.1m.

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