RRG in fast lane as earnings jump 57%
NORTH West car sales and servicing company RRG Group boosted profits by 57% in 2009 despite a 10% fall in sales to £207.8m.
The Salford company, which is Europe’s biggest Toyota dealer, said it does not expect to suffer long-term damage from the Japanese car manufacturers’ safety scare this year – which led to a major recall worldwide.
RRG – which began as a petrol station on Radcliffe Road, Bolton in 1967 – now has 19 franchised dealerships at 11 sites in Greater Manchester and Cheshire.
It said the previous Government’s ‘cash for bangers’ scrappage scheme, tight cost controls and a shortage of availability of used car stock, has driven the hike in profits from £3.3m to £5.1m.
RRG, which was bought by the Japanese-based Marubeni Corporation in November 2000 for around £20m, trimmed 50 jobs across the business during 2009 from 705 to 655, the company’s accounts reveal.
As well as Toyota – which represents 60% of sales – RRG sells Peugeot. Lexus. Mazda, Suzuki and Kia models. RRG has retail sites in Altrincham, Bolton, Bury, Denton, Macclesfield, Manchester, Oldham, Rochdale, and Salford Quays. It also has accident repair centres at Swinton and Bolton.
Looking ahead to this year the company’s directors said: “A number of factors will impact on the group’s fortunes in 2010, most notably the end of the UK Car Scrappage Scheme in the early part of the year,
“The group will continue to focus on expense control and monitor market conditions in order to continue the strong performance of 2009.”
Commenting on the recall of the 180,000 Toyota cars sold in the UK since 2005, RRG said; “The directors do not believe there will be any lasting impact on the overall profitability of the group as a result of the media coverage of the recall.”
A dividend of £3.3m was paid to the parent company, Marubeni Corp, up from £1.6m last year.
