Revie Bought National Tyre Sites in £49 million Deal

Alan Revie, executive chairman and majority shareholder in the National Tyres & Autocare retail chain, has reportedly bought most of the group's properties in a £49.2 million deal. Citing Axle Group Holdings’ accounts for the year to 31 December 2008, Crain’s Manchester Business suggests the move shows that Revie is about to exit the business.

According to the report, parent company Axle Group Holdings Ltd made a profit of £3.87 million from the sale of the properties to Axle Investments Ltd, which is described as a partnership controlled by Revie. It said the sale was “on normal commercial terms amounting to £49.2 million” but added that Axle Investments still owed the group £49.2 million at the year end. During 2008, the net book value of the group's freehold land and buildings fell from £3.8 million to £107,000. The statement of recognised gains and losses includes a £37.3 million surplus from property revaluations.

As Tyrepress.com reported in July, Axle Group Holdings reported an operating loss of £3.2 million in 2008, compared with operating profit of £4.2 million in 2007. However, sales from Axle’s National Tyres & Autocare retail chain and its Viking tyre wholesale business grew 13.4 per cent to £153 million. Axle Group generated a £3.8 million profit on the sale of properties to Axle Investments Ltd and this is believed to have helped the company achieve a pre-tax profit of £3 million in 2008, down from £5.2 million in 2007.

Revie, who holds a 51 per cent stake in Axle Group, said in April last year that the group planned to invest more than £12 million to add 115 new branches to the company’s network, which then stood at 205.

In December 2008 Axle Group Holdings Ltd appointed Peter Harries as a new executive director. This was followed by the appointment of Tony Neill as Axle Group CEO in February 2009.