Carole Nash boss hails ‘robust’ performance as profits dip

MOTORCYLE insurance and repair specialist Carole Nash has described its annual results as ‘robust’ despite a dip in sales and profits.

The French-owned group, which employs the bulk of its 300 staff in Broadheath near Altrincham, said trading during 2010 was “terrifically challenging” with fewer a fall in motorbike registrations and a more competitive pricing environment.

Turnover in the year dipped from £24.2m to £23.8m, while profits were down by £300,000 at £5.86m from £6.17m the year before.

Despite the fall in earnings, the firm which carries the name of its founder, paid a dividend of £4m to its parent company, French insurer Groupama – which bought the business five years ago.

Commenting on the results, chief executive David Newman said: “This was a robust and highly creditable performance in what was a terrifically challenging year.

“New motorcycle registrations fell to an all time low and with motorcycling a lifestyle choice rather than a practical necessity for many of our customers, the recession squeezed us.

“In stark contrast to the motor market, bike premiums stubbornly resisted growth and there was aggressive aggregator activity.”

Newman said his management team had responded “magnificently” to such challenges by means of a number of innovations, including the launch of an aggregator-friendly sub-brand, Scoot & Commute, and a combined bike and car ‘Six Wheel’ policy. 

“The winning of the prestigious Harley-Davidson Financial Services account for the UK and Ireland was also a great coup and has fostered a hugely successful relationship,” he added.

Acknowledging the economy continues to present tough challenges, Newman said Carole Nash is well placed to prosper. “We are blessed with a particularly dynamic and highly focused management team and an exceptionally strong brand which is truly embedded within the UK and Irish biking communities.

“That is a powerful combination which will ensure we continue to deliver the products and service standards which our customers demand and which in turn deliver such solid profits.”