RMB showing real drive

Apr 18 2008 Evening Gazette

THE boss of a Stockton-based vehicle retail firm has revealed plans to break through the £50m turnover barrier by 2010 - which may involve attracting a major luxury brand to Teesside.

Robert Bennett established RMB Automotive Ltd in 2003 and built it into a £37.5m business with five sites in Stockton, Yarm, Darlington and Northallerton. Despite tough trading conditions intensified by the global credit crunch, he is forecasting 2% returns on £45m turnover next year and did not rule out acquisitions of further sites in the Tees Valley and North Yorkshire.

He said: “First and foremost we will look to grow organically but would consider acquisitions if the right opportunities arise. We are quite choosy about which brands we work with, but manufacturers are interested in coming to the area. The cost of entry is lower here and there is a good mix of skills.”

The company, which turned over £27m in its first year, operates at the luxury end of the market and sells new and used vehicles made by Toyota and Lexus. Mr Bennett believes the strength of these brands and the emergence of hybrid cars - which are powered by combined fuel technologies - will help RMB maintain margins in the current economic downturn.

He said: “Volume brands come in and out of fashion quickly. I have worked with some manufacturers whose products don’t match the quality demanded by consumers.”