Fleet News

Kwik-Fit planning organic expansion

CAR parts and servicing group Kwik-Fit Holdings is planning an organic expansion of its business following the past year's acquisitions, which helped profits and turnover soar to record levels. However, much of the profits boost came from a one-off property sale worth £8.9 million which dramatically shifted the company's fortunes - it would otherwise have increased profits £300,000.

In January, Kwik-Fit issued a profits warning that mild winter weather had led to lower than expected demand for batteries, tyres and exhausts. For the year ended February 29, the Kwik-Fit group of companies posted turnover up 9% to £515.9 million from £472.8 million in 1997/8 and pre-tax profits up 17% to £64.3 million (1997/8: £55.1 million). Strong fleet performance and the completed acquisition of Speedy Europe for £105 million and the acquisition of Apples Car Clinics, which operates 70 car servicing outlets, helped boost the profits and turnover figures.

Sir Tom Farmer, chairman of Kwik-Fit Holdings, said: 'The past year has been a challenging one and has included the biggest development in the company's history. The major developments during the year place the group in a strong position to expand and develop its businesses throughout Europe.'

In the UK and Ireland Kwik-Fit has 860 motorist service centres, with 754 in the Netherlands, Belgium, France, Spain and Germany, 171 mobile tyre fitting vehicles in the UK and Netherlands, 92 Hometune Mobile Servicing vehicles in the UK and 30 wholesale distribution centres in the Netherlands and Belgium. The next year will see organic growth among Kwik-Fit Holding's companies, rather than continuing the trend of acquisitions of the past year, according to Farmer.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee