JOHN Clark Motor Group has lifted profits amid the pandemic despite turnover and vehicle sales going down, new accounts show.
The family-run and owned automotive business with sites across north, east and central Scotland, hailed profits “which were significantly ahead of previous years”.
The firm said that improved efficiencies and recovery rates and an increased focus on cost controls drove improved contributions across the group as it posted year-end 2020 accounts and a 2021 trading update.
Turnover was down 12 per cent to £721.8 million in 2020 from £820.8m in 2019, there were 11,256 new vehicle sales against 14,167, and 15,616 used vehicle sales compared to 16,333 the year before.
Earnings before interest, taxation, depreciation and amortisation were at £15.35m against £12.76m, and profit before tax was £6.25m, set against £2.61m the previous year, accounts filed with Companies House show.
John Clark, chairman, said that “despite the well-documented challenges, the group was able to outperform national new and used car sales performances, experiencing declines of 21% in new volumes and only 5% in used, against 29% and 15% drops in the respective UK markets".
He said: “After sales revenue also fell due to the enforced lockdowns.
“However, improved efficiencies and recovery rates plus increased focus on cost controls drove improved contributions across all businesses in the group.
“From a financial perspective, we continue to have a strong balance sheet and remain profitable with a high degree of liquidity, so we are in a robust position. We plan to build on this and maintain our industry leading position by continuing to seize the right investment and acquisition opportunities.”
During lockdown the group placed 90% of staff on the UK Government Coronavirus Job Retention Scheme which JCMG said it supplemented for the first three months to help support the workers with financial commitments.
Most were working again by the end of June ahead of the planned removal of lockdown restrictions for the sector and all staff had returned to work by the end of October.
It said this year has seen "continued momentum in all areas of the business with turnover growth, to well beyond pre Covid 19 comparatives, accompanied by improved again healthy profits".
Chris Clark, managing director, said the group continued its property investment programme across Scotland and also made substantial in-roads in the development of its online sales platform, covering a “significant proportion” of last year's vehicle sales volume.
He noted: “Put simply, our colleagues made the difference in 2020. Without them and their positive approach to a very challenging set of circumstances, the responses we delivered to every challenge would not have been possible."
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