John Clark Motor Group Delivers a Strong Performance in 2021

Here at John Clark Motor Group, we have today filed accounts at Companies House for YE2021.

The 2021 results saw our group continue to deliver growth in performance across all areas of the business, despite facing a number of well documented sector specific and macroeconomic challenges.

Our new vehicle sales volumes grew by 7.2% to 12,065 outperforming the UK market, which saw growth of only 1%, whilst our retail used vehicle sales volumes also grew by 33.4% to 20,831 units. Service revenue grew by 18.7%, and parts by a further 21.7%, albeit against the backdrop of COVID related closures in 2020. Overall gross margins saw significant growth, which was in part driven by the higher used vehicle sales volumes and unprecedented used market conditions.

These factors led to a growth in turnover to finish the year at £910.3m (up from 2020 at £721.8m and 2019 at £820.8m), EBITDA value improving to £32.55m from £15.35m, operating profit before interest rose to £26.36m from £8.80m and Profit before tax increased to a record level £24.06m.

Chris Clark, Group Managing Director commented:

“I am immensely proud of what our teams have achieved in 2021. They have rebounded from the 2020 challenges and delivered our most successful results in our long 43-year history. Whilst I acknowledge that aspects of the market dynamics were very much on our side, I know that our teams worked tirelessly to come together as they harnessed their collective experience and channelled their abilities to make the very most of every opportunity. I want to sincerely thank them for all their hard work.”

Our staff headcount saw a stable full year average of 1,269 (2020 - 1,272). Throughout 2020 and 2021 our investment activities again included significant sustained spend on staff training, including our in-house management development activities and our expanded apprenticeship program.

Our colleagues at BMW in Aberdeen and Dundee plus Volkswagen Fife, Skoda Perth and Land Rover dealerships in Edinburgh, Perth and Elgin all saw recognition of their 2021 success within their respective manufacturer awards programs. We were also honoured to learn that Glassdoor ranked our senior management team, for their leadership skills, within the top twenty-five companies in the UK.

Beyond these operational successes, our Group has continued with its significant programme of investment, predominantly in Dundee, which saw the opening of our all-new BMW and BMW Motorrad facility, the opening of a new Volvo dealership and a refurbished MINI site.

2022 sees our investment plans continue with a full refurbishment programme being completed at our Land Rover business in Edinburgh alongside an all-new Volvo facility at Newbridge. The Directors continue to commit to further investment plans for sites in Edinburgh, Stirling, Fife and Dundee, alongside further acquisition opportunities currently under consideration. This physical investment is supported by our continued digital and e-commerce investments responding to changes in our customer behaviours, especially post-pandemic.

Having in 2021 assessed and quantified our carbon footprint in accordance with the Streamlined Energy and Carbon Reporting regulations, 2022 has also seen us invest in a range of activities and mitigation measures as we plan our route to achieving a carbon neutral business by 2030.

Our performance in 2022 has seen continued momentum in all areas of the business with turnover growth, accompanied by healthy profits, across all areas of the Group. Used cars are performing well, whilst new vehicle volume is suffering from shortage of supply due to the global semi-conductor issue. However, the combination of a strong HY1 and further increases in used car and aftersales contribution is expected to deliver another strong overall 2022 performance.