Fleet News

Restructuring costs hit Quicks' profits

COSTS associated with a major restructuring by vehicle distribution company Quicks Group has resulted in half-year pre-tax profits slumping £3.2million to £1.8million for the six months to June 30 from £5million for the same period last year. Turn-over fell from £332.4million to £317.8million. New and used car sales were up year-on-year excluding dealership disposals, but a drop in sales of new commercial vehicles was attributed to the company's withdrawal from low-margin daily rental.

The company has relocated its head office from Manchester to St Albans and reduced its dealership network to 46 outlets. Changes in the group's structure reflected exceptional losses of £1.4million and a fall in parts division profits accounted for £1.6million. In the first half, the company took a £600,000 'hit' on closure costs but anticipates annual savings in excess of £500,000.

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