Scotland’s biggest new and used car retailer has laid out the impact of the Covid-19 pandemic on its finances.
Accounts lodged with Companies House show revenue at Arnold Clark fall from £4.4 billion in 2019 to £3.8bn for the year to 31 December 2020.
That is a drop of 14.9% from last year.
The Glasgow-based company said it lost £800 million during the first four months of the Covid-19 pandemic.
It then clawed back some revenue thanks to a post-lockdown boom.
Covid-19 a challenge like no other
Chief executive and group managing director Eddie Hawthorne said that last year was the most difficult in his three decades in the industry.
He said the impact of the pandemic was far greater than the recession of the early-1990s and the credit crunch in 2008.
In his annual review, Mr Hawthorne said: “Prior to the lockdown in March, the group had experienced a very positive start to 2020.
“Over the next four months we lost over £800m of revenues compared with the same period in 2019, primarily as a result of over 65,000 fewer vehicle sales being made.”
The firm made a £2m investment in making all of its premises Covid-compliant.
Arnold Clark reopened between July and October, and experienced year-on-year increases.
Mr Hawthorne said that was due to “pent-up customer demand” during the lockdown.
The firm’s pre-tax profits were reported at £156.5m, a rise of £33.7 on 2019’s £117m total.
The chief executive praised staff, and said Arnold Clark’s long-term planning had stood them in good stead.
Another lockdown in January 2021 hampered the company’s recovery.
Mr Hawthorne said the business – controlled by Lady Philomena Clark, whose late husband Sir Arnold founded the business in 1954 – was on track to record positive results for this year.
He said: “Whilst the start of the year has been difficult, I believe that we and the industry will experience an upturn in business once our facilities are allowed to be fully operational.
“I believe that we are well placed to perform strongly in 2021.”
‘Very positive’ future for Arnold Clark
The firm reported used car sales of 204,627, a fall of more than 50,000 from the year before.
New car sales fell from 63,310 in 2019 to 46,509, reflecting a decline in the UK-wide market.
Arnold Clark boasts 200 dealerships, 150 service centres, 40 accident repair facilities and 13 parts sites around the UK.
The chief executive welcomed the UK Government’s Brexit deal.
Mr Hawthorne said the directors were continuing to monitor how the Brexit impacts the automotive industry.
But he said the impact of Covid-19 would be felt “for a generation.”
He said: “I am determined that we focus on what we can influence.
“We remain very positive about the future of Arnold Clark.”