Profits halve at BMW dealer Maxwell Motors

Maxwell Motors, the BMW and Mini dealer in Blackrock, Co Dublin, made a reduced profit in 2004 as a result of refurbishment work at its showroom.

The company made a profit after tax of €732,031 in the year to end of October 2004, according to accounts just filed. This compares with the 2003 figure of €1.59 million.

Gross profit was down to €4.36 million from €5.3 million. No dividend was paid and accumulated profits at year's end were €7.8 million.

Financial controller David Laing said business was, in fact, steady during the 2003-04 period, but disruption and extra costs arising from an 18-month refurbishment project had led to reduced profits.

The refurbishment work, which ended in December 2004, was a response to new EU rules on showroom standards. During the refurbishment work, the after-sales service was moved off site.

Mr Laing said that to date this year, business was up on 2004 in terms of turnover and profit.

The BMW marque has overtaken Mercedes Benz in Irish sales, though only marginally. "BMW is performing quite strongly, throughout Ireland," he said.

Mr Laing said that with the arrival of Frank Keane's BMW salesroom off the Naas Road, the BMW market in Dublin was very competitive.

In addition to Maxwell's and Frank Keane's, Joe Duffy Motors on Dublin's northside and Murphy Gunne in Milltown also sell BMW cars in Dublin.

The average number of people employed during 2004 was 55, up from 49 the previous year, according to the accounts. Employment costs were €2.7 million.

Directors' remuneration was €898,577. The directors during the year were: Charles F Day; James Hennessy; Patrick Sweeney; Peter Pierse; Charles W Day, and Linda Hennessy.

In December 2004, the company was appointed as the sole BMW outlet in the State for the sale of "factory direct" BMW cars to diplomats and their families.

Diplomats posted here are entitled to source cars free of Vat and Vehicle Registration Tax (VRT), if Irish diplomats in their countries are similarly facilitated.

Likewise, Irish persons travelling abroad to work on government missions - such as humanitarian or security missions for the UN - can source cars here that are Vat and VRT free.