Motor trader Arnold Clark marked his 60th year in the business with record sales figures following a 17.5% spike in turnover during 2013.
The Glasgow-based car dealer’s growing empire made total sales of approaching £3 billion during the year to the end of December, according to details posted at Companies House, while pre-tax profits jumped 40% to £85.2 million.
Used vehicle sales were a highlight with a rise of almost 17% following a string of acquisitions in the prior year, while new car sales rose by 11% to 88,697.
In his statement, Sir Arnold said the spike reflected “a strengthening in the UK new car market generally” as well as the full-year benefit of the addition of new branches including the purchase of the John R Weir franchise in late 2012.
He noted indications of stronger consumer confidence, but warned of tough trading ahead for the wider sector.
Sir Arnold also said the group’s vehicle management and rental business made a “significant” contribution to profits, with an increase in both turnover and profits.
“Despite some signs of improvement in the wider economy, we anticipate a challenging year ahead for the motor industry,” he said.
“We have consistently demonstrated that we can succeed against this backdrop, and early trading results have been encouraging.
“Our commitment to driving the company forward through unrivalled customer value and satisfaction remains as strong as it ever has over the last 60 years.
“I believe we are leading the way in the motor retail sector and look forward with confidence to what should be another successful year.”
The chairman said 2012 had seen an “unprecedented” number of acquisitions, with the focus in 2013 instead on maximising performance.
But the group nonetheless made a string of investments in dealerships in Glasgow, Leicester, Stirling, Warrington, Stourbridge and Wolverhampton, while also purchasing the freehold to its Harry Fairbairn-branded forecourt in Kirkcaldy.
Sir Arnold also hailed the opening of a new multi-million-pound training facility in Wolverhampton, and announced that the existing GTG Training base in Edinburgh’s Sighthill would move to new premises closer to the city’s airport following the acquisition of a substantial property at Newbridge in October.
Arnold Clark Automobile Ltd also acquired the entire share capital of software provider Towquest Ltd, a step Sir Arnold said would safeguard the development of its products and ensure systems would continue to meet its requirements.
The company’s board predicted a “flattening” of demand this year following the buoyant market seen in 2013, but still anticipate modest growth in the UK motor market as the wider economy continue to improve.
The group which operates 200 dealerships, 130 service centres, 40 accident repair centres and 13 parts depots across the UK took its workforce to almost 9,000.