By Scott Reid
Copyright scotsman
John Clark Motor Group has reported stronger sales and continued to invest heavily in the business despite a bumpy industry backdrop and consumer hesitancy over the switch to electric vehicles. Releasing its latest annual results, the Scottish car dealership heavyweight said it had entered the current year confident in its ability to continue investing in its people, facilities and franchise partnerships, while “exploring future acquisition opportunities”. The accounts for 2024 show the group delivering another year of robust trading performance, with strong cash reserves and a continued expansion drive across Scotland. The firm achieved turnover of £1.07 billion, up from £1.03bn in 2023, with sales in excess of 35,000 vehicles. New vehicle sales grew 15 per cent to 15,468 units, while used vehicle volumes rose 7 per cent to 19,698 units. Aftersales revenues increased by 9 per cent to £103.8 million, underlining the strength of the group’s diversified operations. Despite “challenging” used car market conditions in late 2024 and rising interest costs, the group delivered what it described as a “solid performance” with underlying profits – earnings before interest, taxes, depreciation and amortisation (Ebitda) – of £35.2m and operating profit of £25m. Net profit before taxation came in at £19m. The group ended the year with a strong liquidity position, including £20m in cash at bank. Highlights during the year included expansion of the MG brand, with the opening of a second dealership, and the addition of the Kia franchise to the group’s portfolio. The group also completed major redevelopment works in Aberdeen to expand its Skoda, Seat and Cupra dealerships. Progress was made on a state-of-the-art Volkswagen Group facility in Dundee, which opened this March, consolidating the Skoda, Seat, Cupra and Volkswagen commercial vehicle brands. The group said average staff headcount rose to 1,385 over the course of the year, reflecting both expansion and an ongoing investment in people. Significant resources were dedicated to training, apprenticeships and management development to support long-term growth, it added. Managing director Chris Clark said: “Despite market headwinds, we have once again demonstrated our ability to adapt quickly and deliver robust results. Our team continues to grow and be amongst the best in the industry, and we are proud of the results that have been delivered in 2024. “Our balance sheet is stronger, our cash position healthy, and we remain well placed to capitalise on future opportunities across the UK,” he added. The group highlighted challenges around recruitment, retention and rising costs across the sector as a whole, alongside consumer uncertainty driven by “wider economic and political factors”. Battery electric vehicle (BEV) sales also remain an area of “market volatility”, it noted. Following the year-end, the group has completed the acquisition of a freehold property in Stirling to relocate its Land Rover dealership, and continued its development in Dundee to support the expansion of both the MG and BYD franchises. “The introduction of BYD marks another exciting new franchise partner joining our portfolio, building on the addition of Kia in 2024,” Clark added. Clock ticking for drivers to switch to electric vehicles but demand weak – leading dealership chief explains why
