Exclusive: JCT600 steps up a gear to go past £600m turnover mark

The Bradford-based company reported record turnover and gross profits in 2010 in spite of consumer fears over spending cuts and tax rises.

Turnover rose 32 per cent to £615m, while gross profits were up 21 per cent at £75m.

Andy Coulthurst, sales director, said: “We are continuing to buck the current retail trend thanks to our loyal customer base. We look after our customers and they come back again and again.”

Jack Tordoff, the 75-year-old chairman, added: “It’s been another exceptional year for the company and these record results are testament to the hard work and commitment of the entire JCT600 team.

“The strength of these results puts us in an excellent position for future expansion.”

The company, which is wholly owned by the Tordoff family, launched its first television advertising campaign in a decade last week to capitalise on the growth.

The 2010 performance was driven by the £20m acquisition of three new Audi dealerships, which together contributed £75m to sales, and tight cost control, with like-for-like expenses falling by 2 per cent.

Gearing increased from 16 per cent to 26 per cent following the Audi deal, but the group is still in a strong position for expansion. At the year ending December 31, it had bank debt of £22m and net assets of £92m.

JCT600 is split into five main divisions, selling Porsche, BMW and Bentley, Mercedes-Benz, Audi, Volkswagen and volume vehicles, including Peugeot, Vauxhall, Chevrolet, Seat and Chrysler. It also has a Ferrari and Aston Martin business.

Industry figures suggest total new car registrations for these brands grew by 5 per cent during the year, but the group increased new vehicle volumes by 42 per cent, it said.

The group has 32 showrooms with 48 franchised outlets from Newcastle to Boston. The new Audi dealerships are in Lincoln, Boston and Grimsby. Lincoln, a market town with old money, was the best performer of all dealerships last year. The Mercedez-Benz and Volkswagen divisions also made significant contributions to group profit.

In the directors’ report, the group described the results as “excellent, despite consumer confidence being affected by the uncertainty caused by a general election in May followed by media hype surrounding tax rises and public sector spending cuts”.

Nigel Shaw, group finance director, said that JCT600 had outperformed the market by concentrating on the basics and paying close attention to detail.

Operating expenses for the year were £60m, up from £58.5m in 2007, which shows the emphasis on cost control, said Mr Shaw. But JCT600 would not cut costs if it impacted on customer experience, he insisted.

As a business, the group likes to retain its profits, said Mr Shaw. He added: “It is run on a prudent footing in terms of funding. We own all our own property. We have £78m in freehold property.

“That gives the security, but it also gives you the flexibility. Jack likes his security; he’s a traditional Yorkshire businessman.”

Mr Shaw said the values of the business are “very much look after the customer. That’s his philosophy. And looking after staff. Staff retention is crucial. They are the business and without staff, you have nothing”.

He said that the presentation and quality of premises are key as manufacturers tend to have high standards. “We tend to do things very properly. The Porsche site in Leeds cost about £6m,” he added.

The group is investing £1m in new computer systems to improve customer service and contact customers the way they want to be contacted.

JCT600 has made a strong start to 2011 with sales up 6 per cent on last year. Mr Shaw expects public sector spending cuts to take hold this year and uncertainty will continue to be the main economic sentiment.

“I don’t think anybody really sees where it will go,” he said. He does not expect a quick rise in interest rates and struggles to see how tightening money supply will reduce inflation, which is caused by international pressures such as rising commodity prices and Chinese demand for energy.

He is confident though that JCT600 will be able to react come what may: “You can always get a decision in a family business.”

Yorkshire’s top family business

With a turnover of £615m, JCT600 is probably the biggest family-owned business in Yorkshire.

Edward Tordoff founded the business after the Second World War in 1946.

His son Jack, 75 next month, took over and ran the company for 44 years, overseeing much of its growth.

He remains a regular visitor to the headquarters.

Jack’s son John now runs the business as managing director.

John’s son Sam shares the family passion for cars – he is a professional racing driver.

JCT600 had 1,346 employees at the end of last year.

It plans to increase headcount this year by 50-100.