UK Car Group, parent company of Carcraft, has posted a £12.6 million pre-tax loss for the year to September 30, 2008 in comparison to a loss of £735,000 the previous year.
The group saw a 7% drop in sales to £333.8m. The company blamed the pre-tax loss on £7.7m worth of exceptional items, including a £4.3m write-down on the value of its vehicle stock, £2.3m in restructuring costs brought about by “the prevailing economic climate and the worst vehicle depreciation on record” and £98,000 in refinancing costs.
Carcraft has 10 car supermarkets and is owned by brothers Noel and Darren McKee.
The company said it was not cocooned from the downturn, but anticipated it is “well positioned to initially weather market conditions and over the medium term to prosper from the opportunities that emerge”.
McKee said: “Our core strengths, prudent management and quick execution of actions in addressing the business model through the downturn, will ensure we are positioned to take advantage of market recovery.
“With recent acquisitions now fully integrated, restructuring complete and new business opportunities beginning to gain traction we believe our business will further strengthen its competitive position.”
UK Car Group’s net assets at the end of the period dropped to £19.4m from £33.5m at the previous year end.