RRG’s profits go into reverse
RRG Group, the North West car dealership chain saw profits hit by a number of factors, ranging from the Japanese tsunami, to weak consumer confidence and falling market share among its dealerships.
Based in Salford and owned since 2000 by Japan’s Marubeni Corporation, RRG sells Toyota, Lexus, Peugeot, Mazda, Kia and Suzuki cars at 20 franchised garages across the region.
Having changed its year end from December to March, 15 month figures for the period to March 31 show sales of £238.85m, up 20% from £199m in the 12 months to December 2010.
Despite the growth in the top-line, pre-tax profits tumbled 34% from £5.4m to £3.5m in the same period.
RRG, which takes its name from its first site, Radcliffe Road Garage in Bolton, said its directors were “satisfied” with the results.
It added: “Whilst the results are below expectations on profitability, the group has continued to focus on improving customer satisfaction and customer retention.
“The major factors impacting on profitability during the period were the continued uncertainty in the UK, the reduced market share of many of our manufacturer partners and the supply restrictions caused by the tsunami in Japan in March 2011.”
Looking ahead, the group added: “The outlook for the year to March 31 2013 shows little improvement for the UK economy, however a number of our manufacturers remain optimistic of a strong performance due to the introduction of several new vehicle models.”
RRG has sites at Altrincham, Bolton, Bury, Denton, Macclesfield, Manchester, Oldham, Rochdale, and Salford Quays. It also has accident repair centres at Swinton and Bolton. It employs just over 600 staff.
