McConechy’s Profits Down

McCopnechy’s Tyre Services has blamed one-off restructuring costs for a fall in underlying profits. The company, which has 50 branches, recorded an operating surplus of £642,588 in the 12 months to 30 April, down from more than £1.2 million in the previous 12 months. Sales were flat at £31.5 million.

The Herald newspaper quoted managing director Donald Carmichael as saying administrative costs increasing from £11 million to £11.5 million was partly attributable to McConechy’s decision to shut a retreading plant at Paisley, with the decision to source these products externally.

A recent management reorganisation also contributed to one-off costs of £190,000 being charged to the profit and loss account. The management has not published any more specific details about this.

McConechy’s was founded in 1956, when Hector McConechy took over a converted pigeon hut and horse stables on Peebles Street in Ayr and opened his first tyre service depot. Eighteen months later, a former cinema in Kilmarnock became depot number two, followed by Stranraer a year later. McConechy’s went up a gear in 2002 when the firm bought 30 outlets from Goodyear and Dunlop. Details of the amount involved in this deal were nor released, but McConechy’s employee count double to around 400.