Truck dealership drives on despite drop in new vehicle sales

Heavy truck dealer Keltruck has navigated its way through a challenging year for the industry which has seen margins come under pressure.

New vehicle sales account for 60% of the company’s revenues, but in 2016 Keltruck saw a drop of nearly £4m, in line with an industry-wide decrease.

Used vehicle volumes plugged some of the gap, improving sales by £2.5m, but service and parts work also saw a decline of £1.8m.

Overall, pre-tax profits fell 7% to £5.3m as revenues declined 2% to £152.5m – although both figures were ahead of previous years.

West Bromwich-based Keltruck, which has a single manufacturer franchise with Scania, expects the market for new vehicles to remain static in 2017. It hopes to continue to increase the volume of its used vehicle sales to offset reduced margins.

Chairman Chris Kelly, son of the founder and former Conservative MP for Dudley South, said: “Activity levels and customer confidence remain strong and the company remains well placed to take advantage of any market opportunities that may be presented.”

Keltruck was founded in 1983 and now has 20 locations across the Midlands and south Wales.