Better margins help Scania dealership

PROFITS at Scania truck dealer Cheshire Holdings have held up despite a sharp drop in sales.

Cheshire, which trades as Haydock Commercial Vehicles, saw sales fall 38% to £25.7m in 12 months to December 31, a year in which global vehicle sales collapsed.

Improved gross margins, up to 27% from 19% last time, helped the firm prevent a dramatic fall in pre-tax profits which slipped 10% to £842,217.

The directors’ report accompanying the firm’s latest accounts says management focused on improved buying procedures and prices, customer service, and staff development.

“The financial position at the year-end remains sound with improvements in margins being achieved from the initiatives outlined above,” wrote the directors.

Cheshire, which has 160 staff, operates five depots at Preston, Widnes, Ellesmere Port, Haydock and Deeside.

It was acquired by directors Graham Whittaker and Simon Dykes seven years ago following a management buyout.

According to the accounts they took a dividend of £100,000 out of the business which has bank debt of around £1m. Shareholder funds stand at £3.3m.