JCT600 motors ahead with record results
YORKSHIRE car retailer JCT600 has today announced record results reporting turnover up by 36%, growing to £909m.
The Bradford-based family-owned group’s annual results for the year to December 31 2013 show a £241m increase in turnover that includes a ten-month contribution from the Gilder dealerships acquired by JCT600 in March last year, comprising two Audi, four Volkswagen and a SEAT dealership as well as two Volkswagen Commercial Vehicle dealerships, two parts depots and a body shop.
The firm made an operating profit before goodwill and exceptionals of £20.3m, up 30% from £15.6m the previous year. As well as restructuring its senior management team to further drive performance, JCT600 said it is continuing to invest both in additional staff and also in optimising its online presence.
The group’s strong results were driven by a 46% increase in new vehicle sales (16% on a like-for-like basis), well ahead of the UK retail market for the brands JCT600 represents which increased by 9.7%.
The firm, one of the UK’s largest privately owned businesses, also out-performed the used car market which, following a decline for the previous six years, saw a rise in sales of just 0.94% while JCT600 enjoyed a 32% rise in unit sales (17% like-for-like). The group’s after sales operation also continued the upward trend seen in 2012 with gross profit increasing by over £10m (£1.8m like-for-like).
Increased gross profit margins helped JCT600’s fleet division with sales increasing by 66% (28% like-for-like) compared with an increase in the UK fleet market of 5.7%.
“The group has shown resilience throughout the downturn by focussing on tightly controlling costs while providing outstanding customer care. This, together with the additional dealerships provided by the Gilder acquisition, means we are well-placed to benefit from the upturn in consumer and business confidence which began last year,” said JCT600 group chief executive John Tordoff.
“2014 has already got off to a good start with new vehicle sales increasing by 18% in the first quarter as customers take advantage of the excellent deals available and we are optimistic that this momentum will continue.
“The addition of the nine former Gilder dealerships has already made a strong contribution to our continued success, increasing sales as well as extending our geographic reach, and we expect them to have a greater impact now they are fully integrated into the JCT600 family.”
Tordoff added that while continuing to invest in its 47 dealerships with an ongoing programme of improvements, the group is aware of the importance of the internet to customers and this is another area in which it will continue to focus.
“We have seen a huge growth in traffic, particularly to our mobile site with visits increasing by 139% last year,” Tordoff said.
“Over our 60-year plus history, we have built a strong brand and a loyal base of customers, but it is only by responding to customer needs and embracing new technology that we will be able to maintain our market leading position.”
The group employs a workforce of 1,800 people and has 47 dealerships throughout Yorkshire, Derbyshire, Lincolnshire, Nottinghamshire and the North East. It sells 19 brands including Aston Martin, Audi, Bentley, BMW/MINI, Ferrari, Maserati, Mercedes-Benz, Porsche, Vauxhall and Volkswagen.
