Company report: Donnelly Bros. Garages Dungannon Ltd
The Donnelly Brothers Garages group is headquartered in Dungannon. The parent company consolidates the results of eight subsidiaries with a range of outlets. The group is one of the largest NI motor vehicle dealerships, holding 32 franchises.
The year to October 2014 produced a 19% rise in turnover, expressed at an annual rate for the unusual accounting period ending in 2013. The directors commented that they faced a competitive economic climate. They addressed business risks by not being too reliant on one manufacturer, combined with offering strong customer service and after-sales support, along with continued investment in the businesses.
Operating profits, which had fallen in the previous trading period, showed a substantial recovery and, on an annualised basis, were 85% higher. Pre-tax profits also fell sharply last year, partly as a result of higher net interest charges. In 2015 pre-tax profits improved, although they were modest compared to the value of turnover.
The business holds significant stocks of vehicles, with the valuation at nearly £26m. This was equivalent to turnover in an average six-week period and slightly lower than in recent years.
Retained post-tax profits contributed to part-financing of capital investment, but capital expenditure last year at £1.1m was lower than the previous year.
Employment in the group increased to an average of 582 people, higher than in any recent period.