Fleet News

Group's figures buck the dealership trend

STRONG fleet sales coupled with improved profit margins on the business helped dealership, leasing and rental group Sanderson Bramall buck the downward profitability of the sector. The Sanderson Bramall Motor Group reported pre-tax profits of £17.24m (1998: £17.05m) on turnover up to £844m (1998: £832m) for the year to December 31, 1999.

However, against that background, and retail customers particularly deferring purchases, the Group's new car sales increased 6% year-on-year to 25,527 (1998: 24,183) due entirely to a 14% rise in fleet sales as retail business was down 3%. The fleet sales rise was further boosted by a 7% rise on margins which were 5% down in the retail sector. Used car sales increased to more than 23,000 units (1998: 22,980) with profit margins up 7% boosted by the ability to buy in volume due to manufacturing excess capacity.

Elsewhere in the company new van sales increased 22% last year to 7,152 (1998: 5,869). Profits in the leasing and rental division increased 26% year-on-year as net profit margins on sales rose 12% but, despite, the rise, Bramall said the widely reported drop in residual values had impacted on the figures.

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