JCT 600 swoops on Audi dealerships in £11m deal
YORKSHIRE-based car retailer JCT600 has expanded its operations with the acquisition of two Audi dealerships from the Gilder Group for more than £11m.
The £30m turnover Hull and York Audi dealerships, which employ more than 80 staff, are the first Audi franchises within the JCT600 Group.
As a result of the deal JCT600 now operates 44 dealerships throughout Yorkshire and the North East and employs more than 1,300 people across the region.
Audi has become the latest addition to the long list of manufacturers already housed within JCT600 including Porsche, Bentley, Aston Martin, Ferrari, Maserati, Mercedez-Benz, BMW and Volkswagen.
Chief executive John Tordoff said: “We have wanted to work with Audi for some time as the brand has a great fit with our offering.
“We have enjoyed a successful start to 2009, despite a tough year last year, and these acquisitions show our confidence and prove that as a business we have weathered the worst of the economic downturn.”
Mr Tordoff admited that the car industry had faced unprecedented challenges in the latter part of last year but the firm had reacted quickly and implemented a cost reducing strategy, managed car stocks and improved its internet useage.
“All this has ensured we have established an excellent foundation for the business, and we can now show the confidence to further expand the group,” he said.
In the first seven months of this year JCT600, based at Apperley Bridge, near Bradford, has increased sales of used cars by 30% compared with 2008. Its new car sales are down just 10% – 15% better than the national UK market.
Despite the impact of the economic downturn, JCT600 outperformed the market and posted profits of £1m after accounting adjustments of £4.6m for goodwill amortisation and exceptional items in 2008.
The 13,000 sq ft York Audi dealership on Centurion Way, Clifton in York, employs 41 staff, as does the 14,500 sq ft Hull Audi outlet on Saxon Way in Hessle.
Both are full service franchises offering new and used car sales as well as servicing.
JCT600 was advised by Yorkshire law firm Gordons with James Fawcett (corporate) and Nick Chamberlain (commercial property) leading the Gordons team.
