Group financial director John Kemp told Tyres & Accessories that National Tyres is “actively looking” for the right kind of acquisition targets and is “prepared to borrow” to do this. In his words, expanding the retail network is a great opportunity to “further enhance (the) bottom line.”
The announcement coincides with the publication of the company’s financial results, which show that the company achieved £121.4 million of sales in 2005, up 7% on the previous year. During the period Axle Group recorded an operating profit of £883,000, almost £9 million more than the company reported in its 2004 accounts.
Commenting on the news, Axle Group chairman and chief executive Alan Revie said: “This business posted a £44 million trading loss the year we bought it and we have turned it into a profitable operation. We currently have 206 sites… and I believe we could grow to about 400 branches.”
National Tyres is currently developing three new branches in Shipley, Yorkshire, Melton Mowbray, Leicestershire and Oldsbury in the West Midlands.
