Fleet News

Universal Salvage profits drop 56%

UNIVERSAL Salvage saw pre-tax profits fall 56% to £1 million (1996: £2.3 million) for the six months to October 31, 1997. Turnover rose 43% to £37.4 million (1996: £26.1 million) and the number of vehicles handled increased 24% to 50,400 (1996: 40,600), but the company was hampered by lower than expected profit per unit and escalating operating costs.

Chairman Cliff Bassett said the additional units included the results of a solus salvage contract signed with Norwich Union in February and several smaller contracts. Although higher unit prices have been achieved at auction, the decrease in gross margin could be attributed to pressure from insurers over contract terms and an increasing proportion of vehicles which could only be sold for breaking.

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