Results just published for 2005 show pre-tax profits to December 31 down from £2.25m in 2004 to £1.07m.Turnover also suffered with 2005 marginally down at £126.25m compared to £127.21m.
Managing director Andy Grzesinski partly attributes the falls to MG Rover “leaving us in the lurch” with cars that were difficult to sell and warranty claims having to be picked up by Macrae & Dick as a goodwill gesture to customers.
Results also suffered because Macrae & Dick contributed significant amounts to its main pension scheme to turn it from a £643,000 deficit in 2004 to being fully funded with a surplus of £172,000 last year. There was also heavy investment in the large Menzies of Stirling site.
“The car market in 2005 was down around 5%,” says Grzesinski, “but Macrae & Dick came out of the year better than most.”