Bradford-based retailer JCT600 has reported record revenues of £1.025 billion in the year to December 31, 2014, an increase of 13% from the previous year’s total sales of £906 million.
Operating profit before goodwill and exceptionals rose by 14% to £23.2m in 2014, thanks largely to the firm’s continued expansion, with gross margins almost static at 11.7% (11.8% in 2013).
“Following our acquisitions from Gilder Group in 2013, last year was about bringing the new businesses into the JCT600 fold, and furthering our aims to grow the best car retail business, as well as being the best place to shop for a car,” said chief executive John Tordoff.
Building on significant increases in volume of new car sales in previous years, JCT600 once again outperformed the market with the company’s new car sales increasing by 12% compared with the UK average rise of 7%, and, after significant increases in recent years, the firm consolidated its used car business with growth in sales of 1% during the period.
JCT600 is made up of 50 dealerships and represents 19 new vehicle brands, with dealerships in Yorkshire and the North East to Derbyshire, Lincolnshire and Nottinghamshire. It employs over 2,000 staff.
“Out-performing the market in new car sales is a signal that our retail offering, service standards and pricing are winning over customers in a market which boasts plenty of choice, and that’s down to good strategy, great colleagues and hard work,” said Tordoff.
JCT600 saw web traffic grow by 16% over the year, and mobile search traffic increased by 58%, underlining the importance of tablets and devices in the way dealerships market to buyers, an area that has been a key marketing focus for the firm for some years.
Nigel Shaw, group finance director at JCT600, said: “This year also looks promising for us as a business. With the General Election safely behind us, we can look forward to a more stable outlook ahead which will allow consumer confidence to maintain its upwards trend.
“We aren’t aggressive about expansion, rather maintaining quality is our primary strategy. However, we are in a good position for strategic growth with relatively low gearing for the sector. We continue to look at acquisition and organic growth in our existing and new regions where opportunities of the right quality are available.”
> For more analysis on Lookers' results and the biggest dealer groups in the UK, come to the AM100 Dinner on June 11 to see the official unveiling of the AM100 listing ahead of publication in AM. It’s also a great opportunity to network with those retailers. More details at www.am100dinner.co.uk.
Image: John Tordoff (foreground), chief executive of JCT600, with directors (L to R) Richard Hargraves, Simon Barrass, Katie Saunders, Nigel Shaw and Mark Taylor
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