Joe Duffy group turnover rose to €79m last year
Turnover at Joe Duffy Motor Group, one of Ireland’s largest car dealers, rose to €78.9 million in 2011. That was up more than €7.3 million on the previous year, according to the latest filed accounts for the group. However, operating profit fell from €3.26 million in 2010 to €984,042 in the same year.
According to the group’s chief executive, Gavin Hydes, the fall in profit was largely due to the costs involved in the expansion of its franchise network in 2011. In particular the group was preparing to open its new Audi dealership at Exit 5 of the M50 in north Dublin. The new facility opened in June after an investment of €10 million by the group, €4 million of which was funded through a loan from Ulster Bank.
My Hydes said the group expects to end this year with turnover in excess of €85 million and is hoping it will exceed €100 million next year. However, he does expect the overall new car market in Ireland to decline to 75,000 in 2013.
In the group’s latest filing the directors’ report states that in 2011 new vehicle sales rose 18 per cent at a time when the overall new car market grew by just 2 per cent. The group’s total new and used vehicle sales for the year totalled 2,333.
Joe Duffy Motors Group holds new car franchises for Audi, BMW, Mini, Porsche, Opel and Mazda brands. Since its accounts were filed it has added further brands to its portfolio. In September of this year it added the Volvo and Land Rover franchises with the acquisition of the assets of HB Dennis Fairview Ltd. It’s also due to add the Seat brand to its range in the coming months.
Despite the significant investments in new brands and facilities, the directors’ report says the group “finished 2011 with cash reserves exceeding our interest bearing long-term debt by €4.7 million”.
According to Mr Hydes: “We didn’t overspend in the boom times and all our acquisitions have taken place in recent years so we have no Celtic Tiger legacies.” The premises for the landmark BMW dealership is leased to the group.
The accounts show the group employed 144 by the end of 2011, though Mr Hydes says this has now risen to 170. He says in the short term the group is focusing on its Dublin operations but an expansion to other locations nationally is in its long-term interests.