Saturday 16 December 2017

Profits and revenues race ahead at car firm

THE number of people buying a 'premium' car this year has increased by 21pc to nearly 12,000, new figures show.
THE number of people buying a 'premium' car this year has increased by 21pc to nearly 12,000, new figures show.

Gordon Deegan

Pre-tax profits at one of the largest motor dealerships in the west of Ireland last year increased by 6pc to €1.5m.

Al Hayes Motors Ltd is a main dealer for the Volkswagen and Mitsubishi brands.

Based in Portumna, Co Galway, the firm enjoyed the increase in profits after revenues grew 9pc - from €28.1m to €30.6m - in the 12 months to the end of October 31, 2013.

The firm benefited from Volkswagen having the largest market share of the Irish new car market last year, with more than 12pc of all cars sold.

The directors' report for Al Hayes Motors Ltd stated: "Despite the current economic climate, the company has maintained profitability in line with expectations and we are confident of maintaining these levels for 2014."

At the end of last October, the firm had accumulated profits of €13.3m and employed 40 people.

The company recorded an operating profit of €1.475m last year compared to an operating profit of €1.374m in 2012.

The firm has recorded consistent profits since 2008, when it sustained an operating loss of €695,260.

The company's cost of sales last year increased by 10pc, from €25.65m to €28.12m.

Al Hayes Motors Ltd employs 28 staff in mechanics and 12 in managerial and administration, with employment costs last year increasing from €1.32m to €1.48m.

The accounts show that during last year, directors Al and Noreen Hayes charged the company €360,000 rent for premises -which followed rental charges of €360,000 in 2012.

The firm's cash reduced from €3.4m to €3.2m.

The firm last year gave €12,896 to charities.

Irish Independent

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