John Clark sees profits reverse

Car dealer John Clark Motor Group (JCMG) reported a drop in annual profits yesterday as pressure on profit margins took the shine off a 10 per cent jump in sales.

Turnover at the family owned company, based in Aberdeen, accelerated to £667 million in 2015, up from £604m the previous year, with new car sales volumes rising 6 per cent to a record high of 13,691 units.

Used volumes powered ahead by 12 per cent to 11,853 vehicles, giving a combined total of 25,544 – almost double the figure of 13,090 recorded four years previously.

But JCMG, which sells marques including Audi, BMW, Skoda and Volkswagen, said pre-tax profits dropped 13.5 per cent to £9.1m as “market conditions saw pressures on gross margins” and interest costs increased.

Group chairman John Clark said: “The group’s primary aim in 2015 was to continue to build on the record results of the previous five years and, despite the expected downturn in the North Sea oil industry and the resultant impact on the Grampian region, to maintain positive momentum towards our key strategic objectives. We continued to focus on developing and extending the relationships with our existing franchise partners in the north, east and Central Belt of Scotland, as well as to diversify via opportunities which were presented to us by others.

“The group added seven new outlets, with one via acquisition and six through franchise transfers.”

During the year the company added Dacia, Peugeot and Renault to its stable after converting former Audi showrooms in its home city. It also has sites in Cupar, Dundee, Dunfermline, Edinburgh, Elgin, Kirkcaldy and Perth.