Nidd Vale posts profit after tough year
MOTOR retailer Nidd Vale believes it is well placed for the future after maintaining profits in one of the toughest years for the motor industry.
Pre-tax profits at the firm fell to £96,388 in 2009 compared to £101,774 the previous year according to the group’s latest directors’ reports.
Savings on interest costs and the company’s cost base allowed it to remain in profit despite a fall in sales of 6.5%.
Managing director Neil Crossley said: “It was a challenging year and quite a unique year and the first time we have had anything like the Government scrappage having an impact.
“It was also a strange year in that used car availablity was quite tight. A lot of the big manufacturers had cut back the size of their short-cycle rental business and we have had to focus our attention on sourcing stock elsewhere.
“There were some challenges globally. When you look at the industry there were some huge changes in 2009 – Vauxhall came close to a change of ownership and GM going into chapter 11.”
Despite the challenges, there were significant highlights for the Harrogate-based firm with after sales and the parts wholesale businesss performing well contributing to an operating profit of £384,000.
Mr Crossley, who joined the company in June, said that while the outlook remains difficult the company is confident about the future as it celebrates its 90th anniversary.
He said: “The industry is completely different to last year. There is no scrappage scheme to drive new car volume. Some manufacturers don’t have the volumes to meet demand and that is creating lengthy lead times that some customers are prepared to wait for and other want to buy straight away.
“There is always demand out there. We have such a strong brand in Yorkshire and further afield through our history in ecommerce trading so we have got the best possible opportunity to be as resilient to the market as possible.
“The business has refinanced, it is well funded and so we are in a good position to move forward.”
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