ONE of the largest motor dealerships in the west of Ireland is anticipating its pre-tax profits will more than double to €310,000 this year.
Accounts just filed by the Co Galway-based Al Hayes Motors show that turnover at the firm to the end ofOctober last year declined by 24% from €41 million to €24.5m.
In the 12-month period, the figures show that the company returned to profit, recording a pre-tax profit of €132,267. This followed the main Volkswagen dealer recording a pre-tax loss of €753,802 in 2008.
The directors’ report states: “We confidently anticipate that turnover for the 12 months to October 31, 2010 will increase to approximately €29.1m based on figures to date. As a result, profit is forecast to amount to €310,000 after rent and before tax.”
The dealer had €10m in accumulated profits and employed 44 at the end of October 2009.
The directors state: “The cost reduction measures taken by management have ensured that, despite the significant reduction in turnover from €41.4m to €24.6m in difficult industry-wide circumstances, the company has made a profit of €132,267.
They further add: “We anticipate the company to be in a strong cash position at the end of October 2010 with cash and investments exceeding €2m.
The company states that “it continues to reduce the number of motor vehicle units which we expect will result in the reduction of the value of stock as at October 31 to €10m”.
The filings show that the company recorded an operating profit of €334,867 last year compared to an operating loss of €695,260 in 2008.
The company’s cost of sales last year dropped by 44% from €39m to €21m. The accounts show that the company’s operating profits were hit last year by bank loan and interest payments of €202,600.
A breakdown of the numbers employed shows 28 in mechanics and 16 in managerial/administration, with employment costs last year dropping by 15% from €1.77m to €1.49m.
The filings show that directors’ remuneration last year halved from €226,125 to €111,701.
The accounts show that during the year, director Al Hayes charged the company €600,000 rent for premises.
The directors did not recommend the payment of a dividend last year.
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