Fleet News

No change to DC Cook expansion plans

CAR dealership DC Cook says it is still planning a year of major expansion despite issuing a warning to the Stock Market that its annual losses could run into millions of pounds. The company blames the losses on a one-off attempt to write off damage caused by falling residual values, at a cost of £2.5 million, although it does not believe any stock will realise less than net book value.

Abortive talks with other (unnamed) dealerships about further expansion also cost £440,000, the company revealed in a Stock Market statement. Operating losses from newly-acquired and start-up businesses and the closure costs and losses from non-performing businesses also had a 'significant impact' on profitability.

The warning follows the company's announcement of 'disappointing' half-year profits, which had halved to £1million.

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