Pre-tax profits at the expanding Cork based family owned Kearys Motor Group last year decreased by 22% to €6.26m due to higher costs.
New accounts show that the group recorded the decrease in pre-tax profit after revenues rose by 14% from €280.56m to €320.02m in the 12 months to the end of February 29th 2024.
The directors for the Keary controlled MRBP Motors UC state the group’s turnover has increased year on year as there continues to be a strong consumer demand.
They state that the group performed well and they continue to explore opportunities for growth for the group.
The directors state that the Group incurred increased operating costs – mainly higher administration costs, principally due to increased wages and salaries costs and higher depreciation charges arising from additions.
The directors state that these factors resulted in a reduction in the Group’s operating profit and profit for the financial year compared to the prior year.
The pre-tax profits of €6.26m for last year follow pre-tax profits of €8.08m in 2023.
They state that gross margin was lower year-on-year, with gross margin percentage of 5.5pc compared to 6.1pc for the prior year.
Dividends of €100,000 were paid out to the ordinary shareholders of a subsidiary company during the year.
The Kearys Motor Group is one of Ireland’s largest family-owned motor groups and represents brands such as BMW, Hyundai, Nissan, Renault, Dacia, MINI and Motorrad
The group’s profits took a hit as non-cash depreciation costs increased from €3.22m to €3.66m.
The group’s earnings before interest tax depreciation and amortisation (EBITDA) from the year totalled €10.8m compared to €11.8m for the prior year.
Numbers employed by the group increased from 378 to 381 as staff costs rose sharply from €18.2m to €20.33m.
Pay to directors, William Keary and Marian Keary totalled €817,688 that included retirement benefits of €409,949.
The operating profit last year takes account of a profit of €155,741 on the disposal of tangible assets and a surplus of €455,057 on the revaluation of investment properties.
The group recorded a post tax profit of €5.28m after incurring a €983,915 tax charge. The profit also takes account of interest charges of €905,535.
Pay to key management personnel during the 2024 financial year was €905,590 compared to €561,517 in the prior year.
At the end of February 2024, the group had €43.46m in shareholder funds and accumulated profits of €35.73m. Cash funds increased from €4.04m to €4.43m.
Reporting by Gordon Deegan
