Record revenues at JCT600, despite pressure on margins and rising costs

Record revenues at JCT600, despite pressure on margins and rising costs

JCT600 today announced record revenues of £1.222 billion in 2016 – an increase of almost seven per cent over the figure for 2015.

Both new and used vehicle sales, as well as aftersales, performed at record levels – but in what the company described as ‘challenging market conditions,’ profit before exceptionals decreased to £17.9m (2015: £20.7m).

Despite pressure on margins and rising costs, JCT600 continued to invest in its 50-strong network of dealerships, with major redevelopments taking place at outlets such as Audi Lincoln, Bentley Leeds and Volkswagen Hull. The group also started work on Porsche Centre Teesside which is due to open next month.

The group also continued to invest in the development of its digital platform which saw visitor numbers increase substantially as more and more customers research their next car purchase online.

A JCT600 Mini dealership

A JCT600 Mini dealership

Chief executive John Tordoff, pictured above, said: ‘Last year, the UK’s national new car market hit a record of 2.7m registrations which, on the face of it, suggests the industry is in rude health. However, a significant number of these vehicles were pre-registered by dealers in order to achieve manufacturer targets.

‘With many of these vehicles subsequently being sold as used cars, this resulted in a significant downward pressure on both new and used vehicle profit margins.

‘However, with over 70 years’ experience in the industry, we are well versed in the vagaries of the market and remain committed to providing great value and outstanding service, which we know will keep our customers coming back to us.

‘As part of this ethos, we are continuing to invest in both our dealerships and our online showroom to ensure the customer journey is as smooth and seamless as possible when shopping with us, and we are also continuing to expand our geographic reach with the opening of a brand-new Porsche Centre in Stockton-on-Tees this summer.

‘We have also made significant progress in our quest to be ‘‘the best place to work’’, rising a massive 27 places to take the 57th position in the Sunday Times ‘‘Best 100 Companies to Work For’’ ranking for 2017.’

Nigel Shaw, group finance director at JCT600, said: ‘Last year, many of our brands put in strong performances and, despite uncertainty in the UK economy in the aftermath of the Brexit vote, so far customer confidence remains strong. As a well-established business with a strong reputation and a loyal customer base, we are looking forward to further growth.’

Founded in 1946 as Brooklands Garage on Sticker Lane, Bradford, by current chairman Jack Tordoff, JCT600 has grown from a single dealership into the largest privately-owned business in Yorkshire. With 50 dealerships stretching from Yorkshire and the north-east of England to Derbyshire, Lincolnshire and Nottinghamshire, the group represents 18 of the world’s leading car marques and has 2,300 members of staff.

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