CAR tyre chain McConechy’s has hiked turnover by more than £6 million after sales were boosted by an acquisition which expanded its depot network.

Ayr-based McConechy’s, which has 61 depots throughout Scotland and the north of England, lifted revenue to £43m in the year ended April 30, driven by its acquisition of Strathclyde Tyres in September. The deal added four depots to the company’s network, in Johnstone, Coatbridge, Kilmarnock and Leven, which continue to trade as Strathclyde as part of the McConechy’s “family”.

However, while revenue grew, new accounts for McConechy’s Holdings show that pre-tax profits tumbled from £1.3m to £383,937. Profits had been boosted the previous year by a £1.2m gain on the sale of a property.

Donald Carmichael, managing director of McConechy’s, said the Strathclyde branches have performed well since their acquisition. Asked whether the company was eyeing further deals, he said: “There is absolutely nothing in the pipeline. We continue to look, but the tyre trade, particularly the commercial trade, tends to be polarising across the UK.

“The biggest are getting bigger, and the smaller tend to be amalgamating, primarily because of the increase in attempts to provide better service, which is probably better done on a larger scale.”

He added that, while McConechy’s continually evaluates its sites, there are no current plans at McConechy’s to build further outlets.

“Our coverage of the areas that we are in is pretty good,” said Mr Carmichael, noting that the firm has a strong presence in Yorkshire and the North-east of England.

While traditional car tyre depots such as McConechy’s have faced growing competition from online suppliers, Mr Carmichael underlined the firm’s ability to take on these rivals “head to head. He explained this was chiefly because of the specialist in-outlet advice its staff can provide.

Mr Carmichael said: “We have something they don’t have, and that is an expert that our customers can come in and talk to, and discuss what sort of tyre is best suited for them, whether they are doing long distances at fairly high average speeds, or shorter distances around the town. That can make quite a difference.”

He added: “We can compete on price with the internet dealers, and we do. But what we have is in-built expertise.”

Asked whether the deterioration of Scotland’s roads, with the winter weather creating even more potholes, is good for business, he said: “Clearly there will be an increase in business because of the poor state of the roads. That does not make me a particularly happy person, though, because at the end of the day people are buying tyres either because they have had a puncture, or there has been some damage [from a] pothole. It is not really what they are wanting to do. The roads are shocking.”

The accounts show McConechy’s invested £380,000 in branch upgrades during the period. Mr Carmichael said this included “significant investment” in tablet computers, allowing it to replace paper job sheets with digital alternatives. There was further investment in areas such as MOT equipment.

Commenting on general trading, Mr Carmichael described conditions as “fairly static”.

While there remains pressure on margins on both the commercial and retail sides of the business, he said the challenge is more acute with commercial work. This is chiefly because pressure on council budgets is having a knock-on effect on demand from local authorities.

“We try to be to be optimistic - I don’t think things are necessarily as bad as made out in some quarters,” Mr Carmichael said.

On Brexit, McConechy’s has not seen any benefit from the pound’s weakness following the vote because it carries out transactions in sterling. He said this gives the company more certainty in the long run. The accounts show the average headcount at McConechy’s climbed to 413 from 345.