Losses at Finglas Motors hit €9.4m

Finglas Motors, one of the largest independent Ford dealerships, plunged to losses of €9.4 million last year after writing off debts from its business software subsidiary RNH solutions.

Accounts filed recently in the companies office show that the group made an operating profit of €936,000 in the year to last October on sales of €55.8 million. However, this was obliterated by an exceptional charge of €10.4 million.

Enda O'Connor, the former GE Capital executive, who bought the company in 1998, was not available yesterday to comment on trading in the current year's trading.

In a note to the accounts the group said it had refinanced its borrowings during the year and had written off debts owed to it by its parent Bronndubh Ltd and from RNH as they were considered irrecoverable. The company had a mortgage of €9.9 million from ACC bank which was secured against a first charge on the assets of the company and also Fingal Motors Properties.

The accounts also show that the group's land and buildings were valued last year at €18.3 million. Set up 30 years ago, the company employs 120.

Mr O'Connor acquired Finglas Motors in 1998 and expanded the group significantly through the addition of Saab, Kia, Citroen and Seat franchises to the original Ford dealership. It claims to have Ireland's largest indoor used car showroom, Finglas Motors Group City.

The group acquired business software and services organisation RNH Solutions Ltd in 2002. RNH claims to be the largest provider of point of sale software in Ireland and is also targeting the US market. The most recent accounts available for RNH are for 2004 and show accumulated losses of €3.28 million and a deficit in shareholders funds of €2.9 million at that stage.

Mr O'Connor is a former senior executive with GE Capital, the company formed when the US conglomerate bought Irish finance house Woodchester. He was involved in building up the groups car and business equipment leasing operation.