€7.5m in losses at O'Flaherty car group as turnover plummets 68%

THE O’FLAHERTY car distribution group suffered a loss of almost €7.5 million last year as turnover fell 68 per cent to €282.6 million, according to accounts just filed at the Companies Office.

The group, owned by members of the O’Flaherty family, is involved in the importation and distribution of Mercedes and other car marques, as well as other activities here and abroad.

The dividend paid to directors was cut back from €25 million – the amount paid in both 2007 and 2008 – to €10 million in relation to 2009 as the size of the company shrank significantly.

The fall in turnover compared to the previous year reflects the fact that in October 2008 a subsidiary of the O’Flaherty group called Motor Distributors Ltd sold the distribution rights to the Volkswagen, Audi and Skoda brands in Ireland to VW Group Ireland, a subsidiary of the German car giant.

However, despite the fact that the company’s turnover was diminished by the loss of the Volkswagen franchise, it managed to narrow its losses. These had amounted to almost €22.7 million in 2008, the accounts for the holding company O’Flaherty Holdings Ltd show.

The group moved into the digital imaging sector in recent years and last year booked a profit of €4.6 million on the disposal of its interest in a British company in this sector called OFHCO (England) Ltd, the accounts show. The group had taken an impairment charge on this investment in the previous year.

The O’Flaherty business was founded by the late Stephen O’Flaherty, who secured a licence to import the Volkswagen Beetle into Ireland in 1950. He acquired the old tramway depot in Shelbourne Road, Dublin 4, for the cars’ assembly, where Ballsbridge Motors, a retail operation in the O’Flaherty group, now operates.

The group, which temporarily broke through the one billion euro turnover barrier in 2006, is now controlled by Mr O’Flaherty’s sons, Michael and Nigel.

It is also involved in leasing, farming activities, property, metal fabrication and the manufacture of aerial lifts.

It employed a total of 969 people during 2009, down significantly from 1,399 the previous year, in what was a tough period for Irish motor sales. Wage costs were cut back to €38.4 million, down from €63.4 million.