Tayside investments drive Peter Vardy’s sales

MOTORING: Firm opens multi-millionpound dealerships in Perth and Dundee

Opening a new £5 million Porsche dealership in Perth helped Peter Vardy’s sales to speed ahead last year.

The group, which set up as a single site in Perth in 2006, now has 14 dealerships across Scotland, employing 800 staff.

Last year the firm’s sales rose 4% to £468m due to an increase in aftersales revenues and used car sales.

Earnings before interest, taxes, depreciation and amortisation was £10.75m for the year ending December 31, a rise from £9.4m in 2017.

Chief executive Peter Vardy said the results illustrate the company’s ability to maintain a strong performance amid difficult trading conditions for the industry.

“Our focus heading into 2018 was on two areas – driving used vehicle performance and maximising aftersales opportunities – and I am pleased to report positive results on both fronts,” Mr Vardy said.

“We are continuing to pursue our six-point strategy for growth and are actively seeking expansion in both the physical and digital markets.

“The fact that we were working on our 2030 vision and strategy plans back in 2018 gives you an idea of the scope of our ambitions.”

Peter Vardy Group operates six Vauxhall dealerships which include sites in Perth, Kirkcaldy and Dalgety Bay.

It also has five prestige dealerships selling Jaguar, Land Rover, Porsche, BMW and Mini vehicles and has two of Scotland’s largest indoor used car showrooms – Carstore at Glasgow and Dundee’s Kingsway, which opened in 2017 after a £7m investment.

Porshe Centre Perth in Tweed Place opened last April, creating around 30 full time equivalent jobs.

The group continued to operate above its objective of £500,000 of retained profit per outlet, leading to a small increase to £5.8m in retained profit after tax.

Despite difficult market conditions, gross profit margins remained in line with the previous year at 12.7%.

Mr Vardy said the group aims to take the lead in digital innovation and transformation, with heavy investment in e-commerce sales and aftersales products.

The company intends to sell half of its vehicles online by 2023, with a target of 60% of all service bookings coming through online channels in the same year.

“We are manoeuvring to be at the forefront of the rapidly changing environment within the motor trade,” he said.

“We have continued to build on 2018’s success during the current financial year, putting us in a strong position to achieve our objectives.”

Top: Porsche Centre Perth, which opened last year after a £5m investment. Above: Peter Vardy.