Frank Keane Motors, one of the Republic's top five BMW dealers, has reported a more than 50 per cent drop in pretax profits in 2004 from €20.8 million to €8.6 million.

In 2003, the group lost its agency to distribute BMW cars and motor cycles, which it was first awarded in 1967.

According to accounts filed at the Companies office, Frank Keane Motors sold the franchise back to the German manufacturer for €7 million, a figure well below some industry estimates at the time that suggested the payment could amount to more than €30 million.

The group has since built its BMW dealership, which is based in Dublin, and is now one of the biggest sellers of this brand in the Republic.

Frank Keane Motors is also a distributor for Mitsubishi cars and Pioneer electrical goods in Ireland.

The accounts show that the company's shareholders, Frank and Mary Keane, received a €2.5 million dividend payment from the business in 2004.

After tax the company made a €7.6 million profit, down from €18.6 million in 2003. Its turnover fell from €204 million to €117 million last year. During that period the cost of sales declined from €180 million to €102 million, according to the accounts.

Frank Keane Holdings retained a €5.4 million profit compared with €15.5 million in 2003. Shareholders' funds increased from €93 million to €98 million.

The group paid corporation tax amounting to €1.2 million, down from €2.1 million in the previous year.

It also paid €3.9 million in capital gains tax last year.

Directors' remuneration last year amounted to €638,238, down from €700,058. The directors are Frank and Mary Keane and William Riordan.

The group has a 50 per cent interest in Hanvale Financial Services, a loan financing company registered in the Republic.