The Courier & Advertiser (Angus and Dundee)
Franchise moves fuel dealerships’ sales growth
CARS: John Clark and Eastern Western’s revenues speed ahead after acquisitions
Two motoring groups that have embarked on ambitious expansion plans in Tayside and Fife have announced rapidly increasing sales.
Car dealership John Clark Motor Group, which operates in Dundee, Cupar, Dunfermline, Kirkcaldy and Perth, grew its turnover by 5.6% last year to £741.8 million.
Meanwhile Edinburgh-based Eastern Western, which purchased Barnetts Motor Group in August, saw its sales rise by more than 10% to £606m.
The transaction saw Eastern Western take over the multi-franchise site at Dundee’s Riverside and Volkswagen in St Andrews.
In a linked-deal, John Clark acquired the Volvo cars franchise in Dundee from Barnetts this year while Eastern Western took on John Clark’s Nissan businesses which are based in Dundee and Perth.
Aberdeen-based John Clark has also invested heavily in preparing a site in the city’s Kings Cross Road for the relocation of its BMW, MINI and Motorrad franchises.
Their Jaguar and Land Rover dealership in the same street opened last week.
The firm’s new car sales dropped by 4% to 13,613 last year but its used vehicle sales rose by 12% to 14,587. Pre-tax profits declined from £8.2m to £7m.
Chairman John Clark said: “Throughout 2017, our investment activities saw a significant sustained spend on our people and our premises.
“Throughout 2018, our investment in staff and premises via further acquisitions continues.
“We were delighted to add Volvo Cars to the groups brand portfolio, opening our first dealership in Edinburgh in February and our second in Dundee during early summer.
“Further developments are planned for 2018, including the build of an allnew facility for BMW, MINI & BMW Motorrad in Dundee, and showroom redevelopments for Skoda, Seat & Volvo in the same city.
“Our mid-year management accounts show 10% further growth.
“Looking ahead, in what is likely to be a period of further consolidation within the motor trade dealer networks, our finances are in good shape, to allow us to not just face up to the added uncertainty of post Brexit Britain but to grow through it.”
Meanwhile Eastern Western’s pre-tax profits declined from £7.1m to £6.5m for the year ending December 31.
Last year, the company acquired the Grassicks car dealership in Perth.
Commenting on the deals in his strategic report in the accounts, secretary Nasser Mohammed said: “Barnetts Motor Group and the Nissan franchises in Dundee and Perth will be a great addition to the Eastern Western Motor Group.
“It will give further depth and scale to our existing business and our recent acquisitions of Grassicks BMW & MINI in Perth and Phoenix Honda in Stirling.
“This further cements our relationship with three of our key partners and is in line with our strategy of growing and developing the group with existing brand partners in new geographical territories.”