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Remit boosts RMIF profits

The Retail Motor Industry Federation has posted profits of £25.6 million for the year ended May 9, 2007, although its operating figures before exceptionals show a £1.639m loss.

Turnover was £3.768m, but operating expenses were £5.032m. The figure is believed to include the estimated £1.3m wage overspend paid to 400 Remit staff after the business was sold to Carter & Carter in May 2006. The RMIF was hoping to reclaim the money.

Exceptional items, including £22m profit on disposals – largely the sale of the Remit training division – pushed RMIF to £25.6m profit. Previous figures, for the four months from Jan 1, 2006 to May 9, 2006, show the RMIF trading at a loss of £859,000.

The RMIF embarked on a major restructuring programme after selling Remit. It now has approximately £8.8 million of net funds according to its cash flow statement, up from £1.585m a year earlier.

Alec Murray, RMIF chairman, said: "The federation has made rapid strides financially and operationally in 2007 and this has helped provide us with a solid position as we look to grow.

"In 2008 we will be focusing on creating profit and value through improving particular areas of the business."

Murray said the sale of the RMIF’s training company Remit in May last year transformed the shape and financial resources of the company and permitted the board to address a number of operational issues, including the financing of the deficit of the final salary pension scheme.

Kevin Waterman, RMIF finance director, said: “There has been a material improvement in our cash and reserves. From a deficit of £5.6 million in 2004 we have made some significant contributions into the fund following the ReMIT sale and are confident that the next tri-annual review will report a significant surplus on the scheme.”

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