IRISH CAR Rentals (ICR) is expected to move into profit in 2011 after recording a €3.4 million operating loss for the 19-month period before it exited examinership last year.
Accounts just posted to the Companies Office for the Europcar, Alamo and National Car Rental franchise-holder show the result came on turnover of €25.2 million.
For the 12 months to the end of November, 2008, the firm posted a loss of €12.6 million on turnover of €15.5 million.
The car hire company was placed in examinership in February last year and emerged in May after securing investment from the owners of the Thrifty car rental franchise.
Irish Car Rentals carried forward a loss of almost €7 million from last May but is on track to record a profit for this year. Notes to the accounts state that its new directors “are confident that they can return this company to a profitable trading position”.
Colm Menton, who runs the enlarged group of franchises, said yesterday he is “positive” on both the car rental market and Irish tourism in general.
“I think Ireland will do better than last year,” he said, basing his opinion on the level of bookings his companies have received, particularly from the US.
Under the rescue scheme spearheaded by Mr Menton and his colleague Eugene O’Reilly, ICR’s debts were written down by €11.3 million and the investors provided €1.29 million in funding. The latest numbers contain an €8.3 million exceptional boost as a result of the writedowns, post expenses.
In their report accompanying the accounts, ICR’s new directors say they are “in discussions with third parties in relation to damages/refunds due arising from the examinership”.
The company’s auditors, BDO, say meanwhile that they are unable to vouch for the accounts because they have not received the all the “information and explanations” they need for their work, which relates to the period before the new owners took control.
Last year, the High Court ordered that a report on the way the company was run before it entered examinership be sent to the Office of the Director of Corporate Enforcement. The move came after the discovery by independent accountants of “very significant financial irregularities” in the firm’s internal accounts.
