Motor group Johnson & Perrott returned to profit last year after two years of losses.
Accounts just filed to the companies office show that the Cork-based group recorded a pretax profit of €2.88 million in the 12 months to the end of December last after recording a 2011 pretax loss of €884,023.
The group returned to profit despite revenues falling by 25 per cent, from €83.7 million to €62.3 million, as the firm sold its Avis rent-a-car franchise in March of last year. The accounts show the firm recorded a profit of €750,000 on the sale.
Employees last year fell to 142 from 231, with redundancy packages to former employees costing €476,944. This redundancy payout was offset by a €293,000 pension settlement and curtailment gain.
Two directors, James Thornton and James Robert Whittaker, resigned from the board last year. Termination payments to directors were €226,659. Remuneration to directors declined from €565,528 to €361,605.
The profit last year takes account of €7.1 million in non-cash depreciation costs. In their report accompanying the accounts the directors said they “are confident that the long-term growth the group had achieved up until the start of the current economic difficulties will recommence following the restructuring of its activities”.
They said their focus for 2013 was to improve the profitability of the dealership business, which faced significant challenges after the disposal of its Avis franchise, and these challenges were successfully met.
“While the financial results from continuing operations for 2013 will be lower than in 2012 . . . the group now has the prospect of long term sustainable profit and substantial growth prospects across its core business.”
The group’s cash last year increased from €6 million to €17.8 million with accumulated profits at €52.7 million.
The figures show that the group – owned by members of the Whittaker family – recorded €17.36 million in its discontinued Avis car hire business last year with revenues from its continuing operations increasing to €44.98 million from €41.5 million .
