DESPITE “another difficult year” Limerick car dealer Frank Hogan has returned to profit.
Pre-tax profits were €174,959 at Mercedes- Benz dealer Frank Hogan Limited in the year to the end of March 2010 compared with a loss of €1.3m in the previous year.
The company said the continued uncertainty in the banking sector and the lack of credit resulted in a challenging year. However, the introduction of the car scrappage scheme in January 2010 helped to boost demand new car sales by around 10,000 units in the full calendar year. New car sales were down 12.5% as compared to the prior year for the April to March period, but added the car scrappage scheme had a positive effect on the quarter four results to March 31, 2010, accounting for 6.5% of new car sales.
Turnover of €23.8m was down 5% on the previous year.
“From a trading point of view, financial year 2011 will be another difficult year with the economic uncertainty and customer finance remaining difficult to obtain. We expect to show a modest growth in revenue, however, margins will remain under pressure,” the accounts read.
The accounts state that the company will be in a strong position to grow its market share.
Through continued monitoring of the industry the director said they are satisfied that they can maintain a viable business.
The company has recently been awarded the Audi sales franchise for the south west region. It is expected that a new showroom and workshop will be open in 2012 in the Limerick area.
Although employee numbers stayed the same at 41 in the year staff costs fell from €2.7m to €1.8m. Directors remuneration was down from €524,604 to €325,201.
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