€1.7m profit at west of Ireland motor dealership

Pre-tax profits at one of the largest motor dealerships in the west of Ireland last year increased by 14% to €1.7m.

The Galway-based, Al Hayes Motors Ltd is a main dealer for the Volkswagen and Mitsubishi brands. The Portumna firm saw the rise in profits after revenues rose to €33.46m in the year to the end of October last.

The firm benefited from Volkswagen having the second largest new car market share last year with almost 12% of all new cars sold trailing marginally behind Toyota and ahead of Ford.

Last year, the number of Volkswagen cars sold jumped by 23% to 11,760, while sales of Mitsubishi also jumped by 23% to 594.

National sales of Volkswagen in the first four months of this year have increased 69% on the same period last year.

According to the directors’ report for Al Hayes “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 2015.”

At the end of October last, the firm had accumulated profits of €14.8m and employed 43. The company recorded an operating profit of €1.7m last year compared to an operating profit of €1.475m in 2013.

The accounts show that during the year, directors, Al and Noreen Hayes charged the company €360,000 rent for premises and this followed rent charge of €360,000 in 2012.

Remuneration to directors last year totalled €104,406. The firm also gave €12,896 to charities.