JCT600 has revealed that its turnover from continuing operations was £444.4 million for the year ended December 31, 2008 in comparison to £533.4m in 2007.
Gross profits across the group were down to £57.7m in 2008 compared to £74m in 2007.
The company made a loss of £6.4m on ordinary activities before taxation in comparison to an £11.1m profit in 2007.
In it’s results statement, JCT600 said: “The year 2008 proved to be extremely challenging for the motor industry. During the second half of the year the business was affected be the worsening economy which caused unprecedented falls in used car values and new and used vehicle sales.”
JCT600 responded to this by increasing its volume in used car retailing, turning stock more frequently and limiting its stock provision in the final quarter to £1.4m.
Restructuring during the second half of the year translated into a 10% reduction in head count to get expenses reduced by £1.5 million which JCT600 believes will translate into positives for the full 2009 year results.
JCT600 said: “Despite operating in difficult times, the group has a strong balance sheet with shareholders’ funds of £78.6m. This is underpinned by a freehold property portfolio of £62.8m.”
Gearing has been improved to 23.5% and the dealer group believes it is still able to take advantage of growth opportunities as they arise.
JCT600 reported a positive start to the year with used car sales up by 27% on a like for like basis. It also says aftersales has been strong for the group and along with its reduction programme, it has seen first quarter trading profits at a higher level than planned.