Motor trade veteran John Clark yesterday committed more than £2 million of new investment to Dundee, and revealed that profits at his group jumped by more than two-thirds last year.
Turnover at John Clark Motor Group rose by a third to £470m during the 12 months to the end of December, as sales of new vehicles shot up by 31% to 11,101 units and used cars grew 27% to 9,023.
Earnings rose 68%, with pre-tax profits coming in at £7.4m during what Mr Clark called “another strong year for the company”.
The results marked a fourth consecutive year of record-breaking performance and came following significant expansion, but the firm’s chairman and managing director said his company’s investment would not stop there.
He plans a full overhaul of the existing Dundee Audi franchise, with an expansion of showrooms and service department, and is also contemplating a revamp of the group’s BMW and motorcycle forecourt at Dryburgh Industrial Estate.
The investment, which is likely to total around £2.3m, is expected inside the next six to eight months.
Mr Clark said that the group had “ideas” about increasing its presence in the City of Discovery even further, with more expansion in Dundee “definitely on the cards”.
He said: “2013 was another strong year for the company. To have had our fourth record-breaking results in a row shows what an outstanding team we have.”
He added: “Our focus remains on providing the best customer experience alongside our premium franchise offering, illustrated by our ongoing investment across the group in both our facilities and our staff.
“One of the highlights of 2013 was the acquisition of the new dealerships, and I am pleased to say that all four are making good progress and are generating results which are well ahead of expectations.”
John Clark acquired Land Rover dealerships in Cupar and Perth for an undisclosed sum last summer, as well as two Jaguar branches in Edinburgh and Perth. Mr Clark said the locations were performing well, with Jaguar expected to up its contribution to the group further following a launch of new ranges in the coming year.
Meanwhile, the group’s Kirkcaldy Volkswagen dealership also benefited from a major expansion during the year.
Flagship Nissan and Mini franchises have just opened at Balmoral Park in Aberdeen.
The investment came as the motor market continued to rev up. Overall, new car sales climbed by 12.5% across Scotland last year, according to figures from the Scottish Motor Trade Association.
“The market has been strong,” Mr Clark said. “There’s been a lot of pent-up demand since things dried up back in 2007 and 2008. People have kept their cars for a lot longer, but are being attracted by the good deals that are available now with interest rates being so low.”
Workforce headcount across sites in Aberdeen, Cupar, Dundee, Dunfermline, Edinburgh, Kirkcaldy and Perth has now risen to 1,060, following the acquisitions and further organic growth.
“Equally as important as our infrastructure, we have an increased focus on staff development and training, including our in-house management development programme,” Mr Clark said.
“The first six months of 2014 show no signs of slowing down for us, and we firmly believe that our success is driven by our people.”