Sales growth triggers expansion at RMB Automotive

Expansion plans are moving forward at growing Teesside car dealers RMB Automotive

Robert Bennett
Robert Bennett

A motoring car market has boosted sales by 11% at Teesside car dealers RMB Automotive, triggering expansion plans.

The Stockton-headquartered group, which has been trading for 10 years, has posted annual accounts for 2013 which show increases across almost all divisions, including new and used car sales, servicing and repairs and sales of spare parts.

Turnover grew by 11% to £45m in 2013, and pre-tax profit almost doubled from £324,502 to £603,914.

The group, which increased average headcount from 138 to 147, cites increased consumer confidence and a pick-up in the economy for the strong growth, which it expects to continue throughout this year, and is now actioning expansion plans.

The group, which also runs Toyota dealerships in Stockton, Northallerton and Darlington and sells Lexus models from Stockton, opened a new Ford dealership last year and said an additional piece of land has been bought adjacent to the Darlington Toyota Centre for future expansion.

The expansion plans include a storage and used car preparation centre, which is expected to be completed in the first quarter of 2015.

A report by director Robert Bennett, accompanying the accounts, said: “This new facility will give much needed additional capacity for the group as it continues to grow.”

The company said: “Turnover increased across most areas of the business due to the improving economy and increase in the new car market, as well as the addition of the Ford franchise to the business.

“2013 was a much improved year for RMB Automotive due mainly to a much improved car market on the back of a strong recovery in the economy.

“The economic outlook for 2014 is still good though there is expected to be a rise in interest rates in the near future as concern grows about the possible risk of a bubble in the housing market.

“2014 should continue to be a good environment for the sale of cars though it is unlikely that any market increase will be of the same level as seen in 2013. The new Ford operation, the first of its kind for RMB, is performing ahead of expectation and is expected to continue with strong growth through 2014.”

Looking ahead, new model launches by Toyota and Lexus are expected to attract new customers and deliver stronger results for the second half of 2014.


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