BMW profit in Ireland surges by €1.7m to €1.98m

Operating profit at premium car firm BMW’s Irish subsidiary surged last year, up €1.7 million to €1.98 million on the back of a 17.7 per cent increase in turnover.

Accounts for 2014 show turnover rose by €20.5 million to €137.047 million. According to the directors’ report, the growth in sales and profit was “predominately due to an improved economic environment, higher sales volume and a more focused marketing approach”.

Registrations up 13.6 per cent

Sales figures for 2014 show its

BMW

range had 4,011 new registrations up 13.6 per cent on the previous year, and 484 registrations for its Mini brand, up 4.3 per cent.

Salary costs rose from €2.2 million to €2.55 million, while directors’ fees totalled €329,000. Accounts show a provision of €1 million related to bonuses and sales incentives.

Despite the recovery in profits no dividend was paid to its German parent last year, in contrast to 2013 where there was a dividend payment of €4.8 million.

The accounts show nearly €1 million has been set aside for obsolescence of inventory.

Another provision was for €274,000, listed in current liabilities relates to commercial disputes.

So far this year 4,495 new BMWs and 620 new Minis have been registered in Ireland.

The firm this week launched its new 7-Series range, the flagship for the BMW brand, with prices starting at €96,030.