Arnold Clark profits soar 68% to £263m 29 | 09 | 2022
SCOTLAND’S AND EUROPE’S largest independent car dealership group, Arnold Clark, has delivered a massive performance in the year to the end of December 2021, writes Jim McGill. New financial figures just lodged show the Glasgow-based empire recorded pre-tax profits of £263 million, a rise of 68% on the previous 12 months. The Scots group also saw turnover increase by 25% to £4.7bn.
And while Arnold Clark did receive £5.7m of rates relief during the first four months of 2021 when its showrooms were closed, more significantly it did not take advantage of the Government’s Coronavirus Job Retention scheme which would have been available for 700 staff during the first three months of the year.
The company also stated it had increased retail used car sales by 9.5% to 224,000 vehicles, despite a market wide shortage of used cars, and also pointed to long lead times for new vehicles remaining a challenge.
Aftersales saw its figures rise 11% to £203.7m, while the group’s vehicle management and daily rental arm, Arnold Clark Finance, saw pre-tax profits increase from £27m to £42.1m.
Last year the company also opened its first Innovation Centre in Glasgow after a significant investment of £5 million. Its aim is to educate visitors about the benefits of alternative fuel vehicles and why they are becoming so important.
There are no sales at the site, which is specifically an innovation, information, and educational centre. A second Innovation Centre opened this July in Stafford.
The company also confirmed its Click & Collect and Click & Deliver schemes had been successful, allowing the company to expand the national footprint of its used vehicles business.
In addition to opening vehicle preparation centres in Wolverhampton, Warrington, Nottingham, Chesterfield and Stafford, Arnold Clark also revealed plans to open new concept Click & Collect centres in Solihull, Leyland and Linwood.
The company will also terminate its Toyota and Ford franchises in a transition period from year end; it also has plans in place to refranchise outlets or use them as Motorstores.
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Jim McGill