Buoyant sales drive profits at Maxwell Motors

Maxwell Motors, the BMW and Mini dealer based in Blackrock, Co Dublin, recorded a slight annual improvement in profits in 2005, but the result still lagged the firm's 2003 performance.

Accounts filed by the dealership at the Companies Office show that it made an after-tax profit of €758,711 in the 12 months to the end of October last year.

This marked a 3.6 per cent increase on 2004 profits, but the result was still down on the 2003 figure of €1.59 million.

The company invested in an 18-month refurbishment project at its showrooms that was completed at the end of 2004. Maxwell also invested €606,100 in an unspecified, unlisted investment in 2005.

The 2005 accounts point to buoyant sales of BMW and Mini cars, as well as healthy turnover in aftersales services. Gross profit (sales minus related costs) climbed by 22 per cent from €4.4 million to €5.3 million over the year to October. Net operating expenses were also notably higher, increasing by 20 per cent to €4.5 million.

This left an operating profit for 2005 of €861,241, up by 37 per cent on the previous 12 months.

Borrowings through bank loans and overdrafts increased dramatically over the period, growing from €2.2 million to €13.7 million. There was, however, no notable growth in interest payments between 2004 and 2005.

The company's bankers hold a floating charge over the general assets of the company, as well as a fixed charge on Maxwell's premises at Temple Road in Blackrock.

The dealership's profit and loss account swelled from €7.8 million to €8.6 million over the year.

No dividends were paid to the company's shareholders: the Charles Frusher Day Estate, Charles W Day, Christine Gorman, David Young, Declan Murphy, Dermot Desmond, Eileen Corridan, James Hennessy, Patrick Sweeney, Peter Pierse and Maxwell Motor Holdings Ltd. Charles F Day died in November last year.

The pay of the firm's six directors - Charles F Day, James Hennessy, Patrick Sweeney, Peter Pierse, Charles W Day and Linda Hennessy - fell back from €898,577 to €804,020 over the 12 months. The firm increased its employee base from 55 to 60, with employment costs rising from €2.7 million to €3 million.

The firm is one of four BMW dealerships in Dublin, with the others operated by Murphy & Gunne, Joe Duffy Motors and Frank Keane.

Sales of the BMW marque have been steadily rising over the past few years, with figures from the Society of the Irish Motor Industry showing that 5,401 of the cars were sold in the first seven months of this year.

This compared to 4,649 in the same period of 2005. In all of 2004, 4,820 BMWs were sold in the State.