Dealer expects car sales to gear up for return to profit

THE MANAGING director of one of the midwest’s largest motor dealerships expects the business to return to profit this year after an “annus horribilis” last year.

Noel Daly of main Toyota dealer O’Mara Motors (Limerick) Ltd was commenting yesterday on results for 2009 for the company which show that pre-tax losses increased six-fold from €96,274 to €615,380.

The company sustained the loss after the company’s turnover plunged by 57 per cent from €17.8 million to €7.6 million to the end of December last.

Mr Daly said yesterday: “Last year was the biggest hit we took in 40 years in business. It was a shocking year, our annus horribilis. There was nothing as bad as last year.”

Mr Daly said that the company “has now turned the corner after two tough years and I don’t know if we would have been able to sustain another bad year”.

“We expect to return to profit this year,” he said.

The firm’s revenues have been improved this year by the Government’s scrappage scheme.

Mr Daly welcomed the six-month extension to the scheme.

“The scrappage scheme has made cars more affordable,” he said. “I know some motor businesses would have preferred if there wasn’t an extension as that would have given a lift to business in December, but it will be good for business next year.”

The accounts show that the company had accumulated profits of €1.4 million at the end of last year. “We have a healthy balance sheet and we are optimistic for the future,” Mr Daly added. “The first quarter of next year will tell us a lot.”

The firm has state-of-the-art showrooms on the Tipperary road out of Limerick city, covering 2,600sq m (28,000sq ft) on three floors.

Mr Daly said: “Staff have had wage cuts, worked three-day weeks. There has been more scrutinising of costs, but we have been anxious not to cut back on numbers because you lose all of that experience.”

The figures show that the company sustained an operating loss of €519,326 last year compared with an operating profit of €18,165 in 2008.