Tyre group McConechy regains profit traction

MCCONECHY’S appears to have hit the brakes on a two-year profit slide following a robust set of accounts from the tyre and exhaust chain’s parent company.

McConechy Holdings, which also includes investment and rental group MTS Properties, almost trebled pre-tax profits during the year to 30 April to £987,000, up from £332,000 previously. Turnover edged £1.4 million higher to £41.9m.

The report from the directors – who include chairman Derek McConechy and managing director Donald Carmichael – said early indications of improved trading during the first quarter had proven “to be a good barometer for the year under review”. Improvements were recorded in turnover and profits at both company and group level.

“They are further pleased to note the significant strengthening of the group’s balance sheet and increased cash generation in the year,” the statement added.

McConechy’s Tyre Services, which operates more than 50 outlets across Scotland, had been suffering as the economic downturn dragged on its specialist truck tyre supply and repair business. The acquisitive group has reined back on take-over deals as a result, though the accounts indicate that may be changing.

“The directors continue to monitor the market place and watch with interest developments surrounding acquisitions and mergers in the industry,” the company said. “They believe the group is well-placed to take advantage as appropriate.”

The tyre business was founded in 1956, when Hector McConechy took over a converted pigeon hut and horses stables on Peebles Street in Ayr and opened his first depot. Today, the business is primarily owned by Hector’s son Derek. The highest-paid director, assumed to be Carmichael, received £187,000 last year. The group employed an average of 394 staff during the period.