8:15 am, September 28, 2022
Automotive retail power house Arnold Clark saw its pre-tax profit soar by 68 per cent last year to £263m on revenue that rocketed to nearly £4.75bn.
In its accounts and report for the year ended December 31, 2021, just published on the Companies House website, the leading Car Dealer Top 100 franchised dealer said group revenue went up by 24.8 per cent from £3.798bn to £4.741bn.
That translated to its pre-tax profit rising from £156.5m in 2020 to £263m in 2021.
Group operating profit, meanwhile, was up by 63.8 per cent from £169.5m to £277.7m.
The directors said in the accompanying report: ‘The restricted new vehicle supply, combined with a shortage of used cars, resulted in large increases to vehicle margins over the year.’
Sales of new vehicles recovered from 2020’s lows but were still below 2019, while used car sales rose despite a market-wide shortage.
It increased its used vehicle stock significantly towards the end of 2021 to aid sales expectations, and by the year-end its used car stock levels exceeded 37,000 – 11,00o more than usual.
In all, Arnold Clark shifted 56,780 new cars last year – up by 22.1 per cent on 2020’s figure of 46,509 – while used car sales were up by 9.5 per cent from 204,627 to 224,071, making a grand total of 280,851 units.
Demand for aftersales services also rose, with sales up by 11 per cent to £203.7m.
The family-owned company didn’t take advantage of the furlough scheme last year, which could have been used for some 700 staff during the first quarter.
It did, though, repay £44m of VAT deferral in February 2021 that had been allowed in 2020.
In his statement, chief executive Eddie Hawthorne praised ‘the tremendous efforts of our staff’, adding: ‘The directors and I wish to thank all employees for the contribution they have made, and continue to make, in looking after our customers and ensuring the financial stability of the group.’
He added: ‘The resilience of our employees and business model, along with the loyalty of our customers, throughout the pandemic, gives me optimism that we can look forward to 2022 with renewed confidence.’
Hawthorne also acknowledged the impact that the pandemic had had on employees’ mental health, saying its Space portal for staff well-being had more than 2,000 visits last year.
It was revealed that more than three-quarters – 77 per cent – of Arnold Clark customers bought their vehicles digitally during the year
The Arnold Clark Finance Ltd vehicle management and daily rental arm enjoyed ‘an exceptional year’, with pre-tax profit increasing by £27m to £42.1m on revenue that grew by two per cent to £426.4m.
Hawthorne, who is also the group MD, hailed the company’s click-and-collect and click-and-deliver services, saying their success meant Arnold Clark had been able to expand its used vehicle business nationally without needing significant capital investment.
In his statement, which was dated March 3, he said large-scale vehicle preparation centres would be opening in Nottingham, Stafford, Chesterfield, Warrington and Wolverhampton during the first half of 2022, with new-concept click-and-collect centres opening in Solihull, Leyland and Linwood.
On the charitable front, the newly established Arnold Clark Community Fund gave more than £10m to 11,500 charities.
