Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Motor group returns to profit

John Murray
Monday 28 June 1993 18:02 EDT
Comments

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.

RICHARD PALMER, who built Western Motors from a pounds 5m company into a pounds 100m one within four years, has returned his new vehicle, European Motor Holdings, to profit, writes John Murray.

The group, which he formed out of Cargo Control, made pounds 3.4m before tax in the year to 31 March against a loss of pounds 1.1m. A final dividend of 2p brings the total for the year to 3.5p compared with no dividend last time.

Mr Palmer said there were signs of a pick-up in the motor retail industry, although about two-thirds of the group's recovery could be put down to the new management's approach.

'What we have done is put in a proper management structure, with good cost controls and strong incentives for our employees to perform well,' he said. 'The whole thing is getting back to basics - in general terms the motor industry is a simple business and shouldn't be made too complicated.'

Wilcomatic, the car wash manufacturer acquired a year ago, contributed pounds 2.6m to pre-tax profits during the 10 months it was included in yesterday's results. Mill Garages, bought for pounds 2.7m two months after Wilcomatic, contributed pounds 1m in its eight months in the group.

Total turnover was pounds 117m ( pounds 23.9m). Mr Palmer said current trading was encouraging, with orders for August, traditionally the strongest month for car dealers, ahead 20 per cent.

Earnings per share were 7.3p and the shares stuck at 115p.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in