British School of Motoring graduates with pounds 4.6m profit
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BRITISH School of Motoring, the UK's largest provider of driving tuition, passed the test it set itself when it came on to the market last November, producing a 12 per cent rise in operating profits to pounds 4.6m last year.
Pre-tax profits were pounds 1m, but would have been pounds 4.5m on a pro forma basis had the company been floated at the beginning of last year. The flotation proceeds allowed the company to pay off the large debts from a management buyout in 1990.
The pre-tax result was pounds 120,000 ahead of the company's forecast.
BSM also managed to increase its market share from 14 per cent to just over 15 per cent, although the total number of new learners declined by 2 per cent. Richard Glover, managing director, said the decline had levelled off: in 1991, numbers dropped by 12 per cent. But he added: 'The demographics are due to start going our way again from 1995 as more 17-year- olds come on stream.'
BSM's business grew 4 per cent, partly on the back of its first television advertising campaign, which was financed by Vauxhall, the motor manufacturer, as part of a deal under which BSM replaced all its cars with Vauxhall Corsas.
Paul Massey, the chief executive, said 1994 had begun well and the marketing push would continue with a cinema advertising campaign that would allow the company to more effectively reach its target market of 17 to 25-year- olds.
BSM will pay its first dividend at this year's interim results. The company said it would have paid a dividend of 5.78p had flotation been at the beginning of last year. The shares, floated at 170p, closed unchanged at 180p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments