Sales and earnings rise at UK Car Group

UK Car Group, the company behind used car dealership Carcraft, recorded an increase in sales and earnings last year despite management concerns over consumer confidence.

The Rochdale-based group controlled by Noel McKee increased sales by 34.2% to £355m in the year to September 30. Pre-tax profits rose by 56% to £8.6m.

During the year the group demerged its online business, Webuyanycar.com, and the financing arm, All in One Finance.

Sales at these divisions rose sharply during the year, up 57% to £226m. But higher administrative costs pulled operating profits down from £7.6m to £5.7m.

After stripping out the demerged elements of the group sales rose 6.7% to £129m.

In their report the directors said the business’s performance was “acceptable” given disruption from the general election, the emergency budget and the football World Cup.

They added: “Looking forward the directors remain cautious about the robustness of consumer confidence. Despite this we have a clear strategy to develop flexibile business models enabling the group to adapt in the changing market.”

The company declined to comment on the figures.