Scrappage scheme boosts Holiways car dealership

Jul 6 2010 by Peter McCusker, The Journal

MOTOR dealer Holiways has seen its profits soar by 77% on the back of steady sales with after-sales and scrappage scheme boosting the bottom line.

Sales for the 12 months ending April 2010 for the North East Ford dealership totaled £40.4m, which were in line with the previous year’s performance, with pre-tax profits up from £317,455 to £511,348.

The company, which is based in Newton Aycliffe has three other County Durham outlets at Hartlepool, Durham, and Bishop Auckland.

The directors described the performance as “pleasing” in the firm’s latest set of financial results.

“The financial year threatened to be a difficult period for the company and the motor industry in general, especially in the current economic climate,” they added.

“The directors focus was therefore critical in reviewing all activities on a frequent basis. Once again it was pleasing, and essential that manufacturers targets on new vehicle sales were achieved, assisted slightly by the government’s scrappage scheme.”

The directors go on to say that in the last year after-sales service made a “significant” contribution to the overall performance.

They said: “The bodyshops being accredited approved repairer for a number of major insurance companies, increased turnover by 19.8% whilst parts departments turnover increased by 13.9% mainly due to its parts delivery operations.

“These factors enabled turnover to remain comparable to the previous year.

“However the company did take advantage of a number of cost saving areas which improved profitability, year on year. In order to achieve this the company was heavily reliant upon its workforce and continued customer and partner support.”

In the last year the company reduced its workforce from 171 to 163. It also saw commissioned a revaluation of its freehold property assets which saw an uplift of around £1.5m.

Holiways is the latest North East car dealership to report an improved performance in the last year with Newcastle-based Jennings and Carlisle-based Lloyd Motors all having a good year on the back of the scrappage scheme.

However with the scrappage scheme having come to an end there has been a slow down in sales and many dealers are expecting a tougher year ahead.