Scots dealer profits soar by £1.92m 06 | 12 | 2010
ONE OF SCOTLAND'S biggest multi-car franchises, Inverness-based Macrae & Dick has reported a £1.92 million increase in its pre-tax profits on the previous year to £2.33m. The Highland dealership group highlighted a recovery in used car values and the scrappage scheme that ended earlier this year as triggers for its improvement.
Group managing director Andy Grzesinski, who oversaw a slight growth in 2009 turnover over the 2008 figure to £129.45m, said used car prices, the effects of scrappage deals on new car sales and company-wide cost-cutting measures helped deliver a 1% rise in gross margins. Together they contributed to a staggering 228% rise in operating profits to £1.71m.
But Grzesinski has raised concerns about recent downturns in sales and aftersales volumes since the General Election.
“During the first part of 2010 trading was ahead of 2009 in the same period, but since the election there has been a downturn in market demand for new vehicles coupled with a lower than budgeted service and repair income,” the group managing director explained.
But Grzesinski is pleased with Macrae & Dick’s overall performance in UK terms when it comes to new car sales in 2009. While the national average figure in new sales was down 6.4%, Macrae & Dick recorded a downturn of just 3.6%.
“I’m pleased with that result,” he continued. “I put that good performance down to our great customer loyalty – a strength we are continuing to build on. Customer retention is still the key to this business.”
Macrae & Dick — which annually turns over 10,000 vehicles selling 3500 new and 3500 used with 3000 going to trade — employs 450 people across Scotland with Ford, BMW, Mini, Honda, Land Rover, Mazda and Jaguar franchises at locations from their large headquarters site in Inverness to Elgin, Perth and Stirling.
In addition, the firm also runs extensive bodyshop facilities and has Budget car hire operations in Inverness and Stirling.
Keep up-to-date with all the latest news by following us on twitter.com/scotcars
Jim McGill