Car dealer looks out for staff as pre-tax profit more than triples for an Inverness-based Hawco and Sons
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Pre-tax profit more than tripled for an Inverness-based car dealership in 2020.
It came despite a drop in turnover at Hawco and Sons, which was forced to close for part of the year due to the pandemic.
A strategic report accompanying the firm’s latest accounts for the year ended December 31, 2020, stated: “In order to protect jobs and the future of the business, a large proportion of the workforce were placed on furlough for a proportion of 2020, with the business claiming furlough scheme grants totalling £805,000.
“The directors were diligent in ensuring the furlough scheme was only used for the purpose the government intended, putting in processes to ensure nobody could work while on furlough, and that staff returned to the workplace or were set up to work remotely as soon as it was safe and practicable to do so.
“This enabled the workforce to be maintained at the same level as in 2019.
“Throughout the pandemic, the directors have taken a cautious approach to staff and customer safety putting measures in place that are proportionate but often exceed government requirements.
“This has required significant changes to working practices to facilitate social distancing with less face-to-face interactions and more reliance on technology, while minimising any impact on customer service.
“2020 was also a difficult year for our staff, with many spending months on furlough or worried about their future. The directors were cognisant of the impact this could have on their mental health and wellbeing and did their utmost to ensure all staff received effective and regular communication and access to professional advice and support where required.”
Turnover decreased from £73,860,197 in 2019 to £65,439,641 last year. For the same period, pre-tax profit rose from £67,764 to £233,307.
The average number of employees stayed at 186 last year, while staff costs decreased from £5,898,742 to £5,549,807.
The report added: “Trading results thus far in 2021 have been encouraging with half-year profits of £601,000 achieved.
“While there still remains the possibility of further business interruption due to Covid-19, the success of the vaccination programme has helped to reduce this.
“The biggest issue at present is restricted new vehicle supply due to the global microchip shortage and this is likely to continue into 2022.
“The used vehicle market remains buoyant however, with strong used car values. It is therefore important we maximise the potential of this market by retaining as many part exchanges for retail as possible and having an effective stock acquisition process.
“With customers retaining cars longer due to lack of new vehicle supply and higher volumes of MOT work expected over the balance of the year, aftersales services should also be in demand. The market for aftersales staff is however very competitive locally, so staff retention will be key if we are going to capitalise on the aftersales opportunity.”
