ATS Euromaster planning to close a third of UK locations

ATS Euromaster is planning to close 86 service centres as a result of increasing costs, sluggish growth and over capacity.

The Michelin-owned company said the move was part of a wider review of its operating model. 

It currently operates a nationwide network of more than 235 tyre and service centres and recently announced plans to scale-up its mobile servicing business.  

It would not be drawn on which “non-profitable” sites are threatened with closure or how many jobs are under threat.

However, AM's sister title Fleet News understands that up to 400 employees could be impacted.

In a statement to Fleet News, it said: “In a UK automotive aftermarket context of overcapacity, increasing costs and sluggish activity and growth, ATS Euromaster intends to review its current operating model and has put in place a proposal to close non profitable service centres. 

“Employees impacted by this proposal are under consultation. In the meantime, our priority is to provide them with the best level of support as possible.” 

It added: “This decision will not impact the high quality of services that we offer to our customers. 

“We intend that it enables us to concentrate our efforts on strategic levels for sustainable development, including services around ATS mobile capabilities and the shaping of a franchise model already successfully developed in several countries.”

In the latest full accounts filed by the company, for year-ending December 2023, it reported losses after taxation of £13.9 million compared to a loss of £20.6m the previous year (2022).

The turnover for the year was £165.5m compared with £147.1m in 2022. Gross margin fell slightly at 42.5% compared with 44.4% in 2022. 

Meanwhile, distribution and administration costs increased slightly to £86.3m and the operating loss for the year was £16.8m, compared with £19.8m in 2022.

Full-year figures for 2024 are not due to be filed until September of this year.

Author: Gareth Roberts