Parks’ sales rise but margins and profits under growing pressure

CAR dealer and coach hire company Park’s of Hamilton saw sales rise but profits dip last year as margins continued to come under pressure.

The Lanarkshire-based company, controlled by founder Douglas Park, saw turnover increase by four per cent in the year to 31 March to £354.1 million but pre-tax profits fell by 9 per cent to £10.8m.

Despite what the company described as “difficult trading conditions in the face of the general economic uncertainty” and the end of the car scrappage scheme, sales in its motor division rose by more than 4 per cent, with turnover in the coach hiring arm up more than 8 per cent.

The company said the business environment remained challenging.

“The car market in the UK is highly competitive and margins continue to be tight. We are also subject to consumer spending patterns and consumers’ overall level of disposal income within our economy,” it commented.

Staff numbers increased slightly to 1,084 during the year with the highest-paid director’s pay package also edging up to £95,512 from £91,005.

Earlier this year, Park was linked to a rival approach to Craig Whyte’s bid to buy Rangers football club.

Park founded the company in 1971 as a small coach operator before expanding into car dealerships in 1977.

The company now operates dealerships across the west of Scotland and its coach arm has more than 120 vehicles operating on business and leisure routes throughout the UK and Europe.