Scotland business

Arnold Cark Automobiles reports record turnover

Sir Arnold Clark Image copyright Arnold Clark Automobiles
Image caption The company is led by Sir Arnold Clark, who has been in the car sales business for more than 60 years

A sharp rise in used vehicle sales helped Arnold Clark Automobiles achieve record turnover last year of £3.35bn.

The group, which operates more than 200 dealerships in Scotland and England, reported used car sales rose by 10.8% to more than 175,500 units.

It attributed the increase in part to the opening of new sites. Like-for-like sales were up by 7.9%.

However, new vehicle sales were down by 8.4%, as a result of a large fleet contract not being renewed.

Pre-tax profit amounted to almost £110.4m - up from just under £108m in 2014.

In accounts filed with Companies House, the Glasgow-based group reported that its vehicle management and daily rental business, Arnold Clark Finance, increased turnover by 10.7% to almost £560m.

However, the division's pre-tax profits fell by 3.8% to £15.5m, following an "exceptional" 2014 driven by major sporting events in Scotland.

'Static' market

In a statement, chairman Sir Arnold Clark said: "In 2016 we expect that the new car market will remain relatively static, with used cars experiencing similar growth to 2015.

"Funding remains in place to take advantage of any opportunities that may arise and to overcome any market volatility.

"Early trading results have been very promising and our strategic objectives remain unchanged: namely, focusing on customer experience, product availability and the widening geographic footprint of the group."

In April, chairman Sir Arnold Clark was named as Britain's first billionaire car dealer in the Sunday Times Rich List.

The newspaper estimated the 88-year-old and his family's fortune at just over £1bn, putting them at 114th in the list.

Related Topics

More on this story