Fleet News

Fleet rise but Quicks profits fall by a third

INCREASING fleet sales failed to stop Quicks Group reporting a slump in pre-tax profits by almost a third in 1999 to £3.4 million (1998: £5.3 million), despite streamlining its operations and disposing of loss-making car dealerships.

While new car sales were down overall by 3.2% after a move away from low margin daily rental business, fleet sales rose 13.5% from 8,883 units in 1998 to 10,082. Gross margins shot up by 34%, with the result that the motor division grew profits by 33% to £0.9 million.

Group turnover fell 7% from £643 million to £600 million and earnings per share dropped to 5.8p (1998: 9.5p) in a year of one-off exceptional reorganisation costs such as a move to smaller headquarters and lower profits from its parts division.

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