Business

Donnelly Group reports £60 million revenue hit from lockdown

Donnelly Group managing director Dave Sheeran.

THE Donnelly Group took a £60 million hit to its revenues during 2020, the car dealer has revealed.

The independent motor group saw revenues fall by 19 per cent to £253.4m, largely as a result of the government enforced lockdown in the wake of the declaration of the Covid-19 pandemic last year.

In a statement, the Donnelly Group said that even with the extreme challenges for the industry last year, the combined range of companies that make up the group still managed to remain profitable.

It declared a pre-tax profit of £1.5m for the year ending December 31 2020. That followed a pre-tax loss of £2.7m in 2019.

The Donnelly Group said the latest accounts follow a period of strategic review and rationalisation.

The restructuring by the motor retailer in 2020 included the closure of its Vauxhall dealership on the Dromore Road in Omagh.

Managing director Dave Sheeran said 2020 had been an "extremely challenging year" for the entire motor retail industry.

“The pandemic coincided with a wider strategic review of the business, the out-workings of which are beginning to materialise in these results.

“The business is in a positive position following £7.2m of annualised structural cost savings and I expect stronger results as the Group’s new strategy is fully implemented.”

“Challenges remain throughout 2021,” he added. “Principally due to the ongoing global pandemic, but the group’s trading has been very positive year to date and in line with expected improvements.”

Enjoy reading the Irish News?

Subscribe now to get full access

Business