The company behind the main Mercedes-Benz distributor in Ireland paid out a €1.76 million dividend last year, amid rising revenue even as profits fell.
MHL Holdings, controlled by the O’Flaherty family, paid out its first dividend in two years as revenues jumped to €415.2 million during 2023, according to accounts just filed with the Company Registration Office. That compared to €364.7 million a year earlier. The company did not disclose an analysis of its turnover.
Still, much of the increase was eaten up by a corresponding jump in the cost of sales, while operating expenses jumped by €4 million. Overall, the business reported a profit after tax of €21.04 million, down from €22.3 million in 2022.
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The directors were “satisfied with the group’s financial and operating performance for the year”, they said in their report accompanying the accounts. The dividend comes three years after the group hit the headlines when it emerged it had paid a dividend of €1.8 million to its owners, an almost identical amount to what it had received in pandemic-related supports from the State.
O’Flaherty Holdings includes Motor Distributors Limited (MDL), which imports Mercedes-Benz vehicles into Ireland. The group also owns a large network of motor dealerships, as well as investment properties. The group has its roots in a company founded by Irish businessman Stephen O’Flaherty, grandfather of the current generation that owns the business. He built the group in the 1950s after securing the franchise for Ireland and Britain for Volkswagen. MDL is no longer a distributor of Volkswagen. It also owns a network of retail garages under its Motor Solutions Limited unit.
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The group employed 340 staff on average last year, up 29 on the previous 12 months. Wages and salaries amounted to just under €20 million, up from €17.9 million in 2022. Fees and other emoluments including pensions to directors topped €1 million, compared to €964,000 in 2022.
This was the first full year after the group had signed a deal with Chinese electric vehicle giant BYD to distribute its vehicles here. Meanwhile, the company signed a deal last month with another Chinese auto firm, XPeng, to distribute its vehicles here.
“The company is actively preparing to launch this attractive and high-tech brand in the Irish market and build on strong levels of brand awareness and demand among Irish consumers,” MHL said.
The firm also booked a gain of €1.1 million from the revaluation of an investment property it owns during the year. That compared to a €1.8 million writedown during 2022. Rental income was little changed at €2.5 million.
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