Cost of sales pushes profits down at Al Hayes Motors
Pre-tax profits at one of the largest motor dealerships in the west of Ireland last year declined by 47pc to €1.16m in spite of a jump in revenues.
The Co Galway-based, Al Hayes Motors is a main dealer for the Volkswagen and Mitsubishi brands.
The Portumna firm sustained the drop in spite of revenues increasing by 22pc - from €42.17m to €51.36m in the 12 months to the end of October last.
The company sustained the drop in profits primarily as a result of its cost of sales increasing from €38.67m to €48.67m.
The firm benefited from Volkswagen having the third-largest market share of the Irish new car market last year with the brand selling a total of 15,411 new cars nationwide.
The brand accounted for 10.5pc of all new car sales. Volkswagen is the top-selling car brand in the county but with the impact of Brexit, Volkswagen sales have dropped 11pc year-on-year though the sale of other top brands have fallen back further.
According to the directors' report for Al Hayes "the company has maintained profitability in line with expectations and we are confident of maintaining those levels for 2017".
At the end of October last, the firm had accumulated profits of €17.7m and employed 47.
A breakdown of the numbers shows that 34 are employed in mechanics and 13 in managerial/administration, with employment costs last year increasing from €1.7m to €2m.