Arnold Clark says growth in 2015 was down to increased used car sales

Arnold Clark says growth in 2015 was down to increased used car sales

ARNOLD Clark has recorded turnover up 2.2 per cent to £3.35 billion in its annual results for 2015.

The group also reported that operating profit grew in line with the increased turnover, up by £2.1 million to £121.7 million.

It has credited a large part of its growth in 2015 to used vehicle sales, which were up 10.8 per cent to 175,526 units.

These figures were bolstered by the acquisitions of West Calder Vauxhall dealership, Hobin of Preston’s Seat dealership, a further Seat dealer in Newcastle, Ness Motors Limited operating in Inverness, Perth and Elgin and a used car outlet in Burton upon Trent.

The company also launched two new Motorstore sites in Wigan and Chesterfield.

Used sales were up 7.9 per cent for the group in 2015, while new vehicle sales were down 8.4 per cent. According to the group, this was because of the non-renewal of a large-scale fleet contract.

Arnold Clark Finance Limited, the group’s vehicle management and daily rental business, saw a 10.7 per cent increase in turnover to £559.2 million, albeit with a 3.8 per cent decline in profit before tax to £15.5 million. The group attributes the decline to the exceptional year of 2014 resulting from one-off events in Scotland that provided an unrealistic baseline for the 2015 figures.

Sir Arnold Clark commented: ‘In 2016 we expect the new car market will remain relatively static, with used cars experiencing similar growth to 2015.

‘Funding remains in place to take advantage of any opportunities that may arise and to overcome any market volatility.

‘Early trading results have been very promising and our strategic objectives remain unchanged; namely focusing on customer experience, product availability and widening the geographic footprint of the group.’

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