Revenues at motor division down 5% to £316.7 million
Motor trader and coach hire firm Parks of Hamilton has reported a fall in motor sales but a rise in coach hire turnover for the 2012 year to March 31.
Full-year results posted with Companies House show turnover at the group's motor division, Parks Motor Group, dropped five per cent to £316.7 million.
Turnover at the group's coach hire operation rose by 10 per cent on the previous year to £22.98 million.
Operating profit dropped slightly from £11.7 million to £11.4 million and pre-tax profits for the year fell slightly from £10.7 million to £10.5 million.
Parks said the car market in the UK “continues to be challenging” and “margins continue to be tight”.
Net cash inflows for the year dropped by 13 per cent to £13.5 million though capital expenditure, including investments, rose from £4.6 million last year to £17.8 million, which includes a purchase of investment property at £10.1 million.
The group has also reported a net financing gain of £11.1 million against a loss of £1.7 million last year and net debt rose from £41.2 million to £49.9 million.
The profit and loss of the ultimate parent company has not been presented in the annual accounts lodged for Parks of Hamilton (Holdings) Ltd, though a note states the parent company turned around a loss of £4.4 million last year to post a profit of £5.1 million.
A note in the group accounts shows one ordinary share was issued during the year to acquire Douglas Park (Properties) Ltd at a value of £4 with the proceeds of 1,250,000 ordinary shares issued for cash during the year amounting to £5 million.
The group, which employs more than 1,100 people, is proposing a total distribution of dividends for the year of £4.9 million, payable to founder and owner Douglas Park as a result of his majority shareholding.
Parks of Hamilton was founded in 1971 by Douglas Park as a hire business with three coaches.
The Park Motors Group is now one of Scotland's largest motor traders.