Record results for John Clark 27 | 09 | 2012
ONE OF SCOTLAND'S leading car dealership groups, Aberdeen-based John Clark Motor Group, has reported record results for the second year running.
In the year to December 31, 2011, the group's turnover was up 10% on 2010, to £308 million. More significantly, the group’s operating profit increased 21%, from the 2010 record of £4.1m to £5.0m in 2011. New vehicle sales increased by 19% during 2011 to a new record of 7,000 units.
For the sixth consecutive year, the family-owned JCMG achieved turnover growth across each of its service, body repair and parts operations.
The group also reported that its multi-franchise trade parts division saw particular growth and stronger returns during 2011, following the opening of a new trade parts division site in Dundee.
The group also opened its new £6m Pentland Land Rover dealership — which now covers the whole of Edinburgh and the Lothians — in Edinburgh’s Newbridge earlier this year.
In 2011 JCMG also extended its Skoda franchise network, opening Specialist Cars Skoda in Dundee and acquiring the Thomson and Potter dealership in Burrelton, near Perth.
Scotland's new £6m Land Rover site opens
On the commercial vehicles front, the group opened a new centre in Dundee, extending the JCMG’s Volkswagen van franchise from Edinburgh, through Fife and Dundee, to Aberdeen. A new van showroom and enlarged workshop were completed in Aberdeen.
The group’s expansion has continued in 2012 with the most recent opening being Specialist Cars Nissan dealership in Aberdeen.
This growth and expansion in existing businesses resulted in a 4% increase in the JCMG workforce, during 2011, to 708. Further growth in 2012, has taken the total number of employees to more than 750.
In the current year (2012), the JCMG reports its turnover has continued to grow. In the year-to-date turnover is up 15%, while net-profit is ahead of both budget and the comparable period in 2011.
“Our aim for 2011 was to build on the momentum in 2010," John Clark, chairman and managing director of JCMG said. "Despite continuing difficult trading conditions, we have succeeded and much of that can be credited to the hard work and dedication of our dealership teams.
“As a group, we have always believed that success depends on the calibre of the people delivering our customer service. So it is appropriate that one of our significant investments during 2011 was to set up new sustained staff training and an in-house management development programme.
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“The accounts show that our staff costs grew at a rate higher than the increase in numbers. Higher average earnings indicate that our colleagues shared in the group’s success.
“Looking to the future, 2012 has started well, but we expect the second half of this year and next year to be quite challenging. Consequently we shall be looking closely at opportunities to grow our after-sales activity, while controlling costs.
“Despite our major investment outlays, with sustained focus on working capital controls we again generated a positive year-end bank balance and we retain a highly supportive relationship with our funding partners.
"They have confirmed their support for our strategic objectives, including further expansion as and when the right opportunities arise.
“This puts the John Clark Motor Group in a strong financial position. We shall continue to focus on extending relationships with our existing franchise partners.
"At the same time, we are always open to consider potential opportunities presented to us by other franchises.”
The Aberdeen-based group currently has 18 motortrade businesses. The group represents BMW, Mini and Audi in Aberdeen and Dundee, Volkswagen in Aberdeen and Fife, Skoda in Aberdeen, Dundee and Perth, Seat and Nissan in Aberdeen, Land Rover in Edinburgh and Volkswagen vans in Edinburgh, Dundee and Aberdeen.
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Jim McGill
Caption: The Clark family (from left) Chris Clark, Victoria Reid and John Clark. Outside John Clark BMW and Mini in Aberdeen.