McConechy's Reports Dip In Profits

According to the Herald Scotland website, Ayr-based tyre retailer McConechy's Tyre Service has posted pre-tax profits of £485,685 for the year to the end of April, down on the figure of £1.2 million for the previous year.

Turnover was up 12 per cent to £41.1 million and gross profits rose too – up 15.5 per cent to £16.1 million. The accounts also reveal that the highest-paid director took a pay cut of nearly 37 per cent.

Managing Director Donald Carmichael was bullish about the results, particularly given the difficult economic climate and the slow-down in the haulage industry, over the period in question. He was optimistic too about the prospects for the current year, pointing out that the first quarter had already seen an improvement across all sectors of McConechy’s business.

Despite the economic slow-down, McConechy’s invested heavily last year in upgrading some of its outlets and also in new technology, such as ‘digital pens’, which send information from the field directly into the HQ’s billing system.
Finally, Carmichael confirmed that McConechy’s was looking towards possible expansion and he is quoted as saying “We still have an appetite for acquisition” although he qualified this by adding: “The difficulty is finding the right acquisition. We’re chasing profit, not turnover.”