Profits fell sharply at Toyota and Lexus auto dealer Denis Mahony Holdings last year, down to €1.42 million before tax from €4.22 million. The drop occurred despite a rise in sales, according to the latest figures.
The company said the main factor contributing to the fall in profit was the company’s defined benefit pension scheme.
Accounts just filed show the motor dealer’s sales rose 17 per cent in the 12 months ended October 31st, to €56.9 million from €42.3 million. However, Its cost of sales rose more than €10 million to €51 million, while administrative expenses rose more than €1 million to €4.6 million.
The group ended its financial year with an operating profit of €1.57 million, less than 40 per cent of the €4.2 million recorded in 2015. Pretax profits for 2016 fell to €1.42 million.
The balance sheet shows that net assets were €17.8 million at the end of last October, compared with €16.9 million 12 months earlier.
The company’s report also pays tribute to its founder, Denis Mahony, who died last April. He established the business in 1963.