Margins are squeezed at car dealer John R Weir
Motor dealership John R Weir has reported a dip in profits as margins on new and used cars continued to come under pressure, but the firm has stepped up its investment in training.
Newly-filed accounts show that the group – whose line-up of marques includes Chrysler, Mercedes-Benz and Subaru – booked a pre-tax profit of £249,000 in the year ended 31 October, down from £424,000 in the previous 12 months.
Sales at the Grangemouth-based group, which has a string of dealerships, edged up to £92.1m from £91.5m. New car turnover increased by 3 per cent while fleet sales achieved “a good level of growth”.
Weir’s directors noted gross margins continued to be under pressure “from the ongoing challenging trading conditions”. Training costs rose by 21 per cent, “reflecting the company’s commitment to ongoing training and development of staff”.